6:00 AM EST – FOMC member Kaplan speaks
8:30 AM EST – FOMC member Dudley speaks
10:30 AM EST – US crude oil inventories
1:00 PM EST – US ten-year note auction
5:20 PM EST – FOMC member Williams speaks
6:50 PM EST – Japan Current Account n.s.a. (December)
7:01 PM EST – U.K. RICS House Price Balance (January)
After pulling back last week and breaking the six-week gaining streak, China’s Shanghai Composite Index (SSE) started this week on a stable note despite global market weakness on Monday. However, the Shanghai Composite Index lost strength as the week progressed.
On February 7, the Shanghai Composite Index opened higher on Wednesday following a recovery in US markets. The index reversed and closed the day at five-week low price levels. Despite the improved global risk appetite, the Shanghai Composite Index declined amid the real estate and consumer sector sell-off. Real estate stocks traded higher for five consecutive trading months until February. Increased volatility and caution triggered profit-booking in the real estate sector on Tuesday and weighed on the Shanghai Composite Index.
The Shanghai Composite Index fell 1.8% and closed the day at 3,309.26 on February 7. The SPDR S&P China (GXC) rose 1.7% on February 6.
Hong Kong’s Hang Seng Index (HSI-INDEX) pulled back last week and broke the seven-week gaining streak. With dented sentiment, the Hang Seng Index declined in the first two trading days this week. Amid an overnight rebound in US markets, the Hang Seng Index opened higher on Wednesday. The demand for stocks at low price levels and signs of an increased risk appetite in the market supported the Hang Seng Index in the opening hours. However, Chinese markets’ reversal dented the sentiment. The Hang Seng Index closed the day with a loss.
On February 7, the Hang Seng Index fell 1.1% and closed the day at 30,261.50. The iShares MSCI Hong Kong (EWH) rose 1.4% on February 6.
Following a weak performance for two trading weeks, Japan’s Nikkei Index (NIK-INDEX) started this week on a weaker note and declined to 3.5-month low price levels on Tuesday. The Nikkei Index opened higher on Wednesday following signs of a recovery in US markets. The market reversed its direction amid consistent weakness in US futures and closed the day almost flat.
On February 7, the Nikkei Index rose 0.15% and closed the day at 21,636.00. The iShares MSCI Japan (EWJ) rose 2.4% on February 6.
Next, we’ll discuss how European markets performed in the early hours on February 7.