Tokyo – Global shares traded mixed on Monday as investors continued to closely monitor economic data and policy moves from U.S. President Donald Trump. Both factors are likely to have a significant impact on upcoming central bank decisions.
In early trading, France’s CAC 40 dipped by nearly 0.1% to 8,171.59, while Germany’s DAX added 0.4% to 22,560.00. Meanwhile, Britain’s FTSE 100 edged up 0.1% to 8,742.97.
However, U.S. markets were closed on Monday for a holiday, leading to a relatively quiet trading day.
In Asia, Japan’s benchmark Nikkei 225 initially rose in early trading after the Cabinet Office reported that the economy grew at a better-than-expected annual rate of 2.8% in the October-December period. This was supported by steady exports and moderate consumption. However, the benchmark quickly fell back and then recovered to finish up less than 0.1% at 39,174.25.
On a quarter-to-quarter basis, Japan’s economy grew by 0.7%, marking its third consecutive quarter of growth. This also led to the country’s fourth straight year of expansion, with a 0.1% growth in the seasonally adjusted real gross domestic product (GDP) in 2019. Real GDP measures the value of a nation’s products and services.
In other regional markets, Australia’s S&P/ASX 200 slipped by 0.2% to 8,537.10, while South Korea’s Kospi surged by 0.8% to 2,610.42. Hong Kong’s Hang Seng, on the other hand, reversed course and slipped by less than 0.1% to 22,616.23. The Shanghai Composite added 0.3% to 3,355.83.
Investors around the world are closely watching for any potential upward pressure that may arise from the recent tariffs announced by President Trump. However, analysts now believe that Trump may ultimately avoid triggering a global trade war.
One of the reasons for this is that his most recent tariff announcement will not take full effect for several weeks, leaving time for negotiations between Washington and other countries.
The goal of the Federal Reserve, as well as the Bank of Japan, is to maintain inflation at 2%. This is crucial for the stability of the global economy.
In terms of energy trading, benchmark U.S. crude added 28 cents to reach $71.02 a barrel, while Brent crude, the international standard, rose by 34 cents to $75.08 a barrel.
In currency trading, the U.S. dollar declined to 151.90 Japanese yen from 152.25 yen. The euro also saw a slight decrease, costing $1.0472, down from $1.0495.
Overall, global markets remain cautiously optimistic as they wait for further developments on economic data and policy moves from the United States. With negotiations still ongoing, there is hope that a potential global trade war can be avoided, providing stability and growth for the global economy. Investors will continue to closely monitor these developments in the coming weeks and months.
