Monday May 25th

25-05-2020

European markets climb higher as gradual reopening continues; Airbus and Lufthansa up more than 5%

European equities traded higher on Monday as investors took confidence in business recovery while countries gradually reopen their economies and lift coronavirus lockdown restrictions. The French CAC 40 was up about 54 points in morning trading at 12:30 p.m. in Paris while Germany’s DAX index was up 186 points. U.S.and U.K. markets are closed Monday for Memorial Day and the U.K. spring bank holiday, respectively. Asia markets traded mostly higher on Monday as investor sentiment remained resilient despite growing concerns over the U.S.-China relationship. In Japan, the Nikkei 225 index added 353.49 points, or 1.73%, to 20,741.65 while the Topix index was up 24.40 points, or 1.65%, to 1,502.20. South Korea’s Kospi gained 24.47 points, or 1.24%, to 1,994.60. Mainland Chinese shares traded mixed: The Shanghai composite rose 0.15% to 2,817.97, the Shenzhen composite was fractionally lower at 1,750.82 and the Shenzhen component was down 0.11% at 10,592.84. The Hang Seng index in Hong Kong erased earlier losses of more than 1% to finish up 0.1% at 22,953.68. Oil prices eased on Monday on concerns over rising tensions between the United States and China over Beijing’s plans to impose security laws on Hong Kong and the possibility of sanctions from Washington. Oil prices have risen sharply in recent weeks as an easing of coronavirus restrictions has led to increased demand, but the tensions between the United States and China are beginning to weigh on sentiment. Brent was down 19 cents, or 0.5%, at $34.94 a barrel by 0152 GMT. U.S. oil was down by 6 cents, or 0.2%, at $33.19 a barrel. Both contracts have risen for the past four weeks, although prices are still down around 45% so far this year. Gold declined on Monday as Japanese equities rose on news of a potential stimulus program that boosted investors’ risk appetite, though fresh tensions over Hong Kong limited the metal’s fall. Spot gold was down 0.5% at $1,726.18 per ounce by 0512 GMT. U.S. gold futures were fell 0.5% to $1,726.60.