8:15 AM EST – Bank of England Governor Carney speaks
10:00 AM EST – US existing home sales (November)
10:30 AM EST – US crude oil inventories
6:50 PM EST – Japan’s foreign investments in Japanese stocks
China’s Shanghai Composite Index started this week flat following a five-week losing streak. After rebounding on Tuesday, the Shanghai Composite Index pulled back on Wednesday.
The market sentiment has improved this week amid strong global market sentiment. Increased optimism about the US tax reform bill boosted the global market sentiment. However, the Shanghai Composite Index pulled back on Wednesday following the decline in US markets overnight. Increased concerns about tighter liquidity weighed on the financials sector and China’s markets on Wednesday.
The Shanghai Composite Index fell 0.27% and closed the day at 3,287.61 on Wednesday. The SPDR S&P China (GXC) fell 0.42% on December 19.
Following a brief recovery last week, Hong Kong’s Hang Seng Index rebounded more this week. The Hang Seng Index rose in the first two trading days of the week but lost momentum on Wednesday. After the pullback in US markets, the Hang Seng Index opened the day lower on Wednesday. With increased volatility, the Hang Seng Index closed almost flat. The market is looking forward to the release of Hong Kong’s consumer price index on Thursday.
On December 20, the Hang Seng Index fell 0.06% and closed the day at 29,237.00. The iShares MSCI Hong Kong (EWH) fell 0.37% on December 19.
After falling last week, Japan’s Nikkei Index regained strength this week and opened strong on Monday. Following a brief pullback on Tuesday, the Nikkei Index opened lower on Wednesday and regained strength as the day progressed. Strength in the rubber, shipbuilding, and transport sectors supported the market today.
The Nikkei Index rose 0.09% and closed the day at 22,888.50. The iShares MSCI Japan (EWJ) fell 1.01% on December 19.
In the next part, we’ll discuss how European markets performed in the early hours on December 20.