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On 25 May 2020 - Global markets rose on thin trading

Fidelity

Fidelity - Research team

The US market was closed on Monday for Memorial Day, while the UK market was shut for a Spring Bank holiday. European and Asian markets advanced in thin trading.

European markets

European stocks rose on Monday in thin trading due to holidays in the UK and the US. Gains were driven by Deutsche Lufthans and Bayer, as well as by an upbeat business sentiment survey out of Germany.

The Stoxx Europe 600 index rose 1.1%, while the French CAC 40 index rose 1.5% and the FTSE MIB Italy gained 1%. The German DAX led regional gain, surging 2% on a mix of data and corporate news.

Shares in Bayer surged after Bloomberg reported the company has reached deals with 50,000 to 85,000 U.S. cancer lawsuits connected to its weedkiller Roundup. Deutsche Lufthansa advanced on reports that the struggling German airline was close to a bailout deal.

In economic news, German business sentiment beat forecasts and was stronger than expected for May after a “catastrophic few months,” according to the Ifo institute, as the gradual easing of the lockdown “offers a glimmer of hope” for businesses. Meanwhile, data confirmed a 2.2% slowdown in German first-quarter growth, marking the biggest decline since the financial crisis and pushing the economy into a recession.

Asia Pacific markets

Asian shares traded mostly higher on Monday. South Korea’s Kospi rose 1.2% and Australia’s S&P/ASX 200 gained 2.1%. However, Hong Kong’s Hang Seng Index fell 0.2% after police used tear gas to quell weekend protests over a proposed national security bill for Hong Kong. The Shanghai Composite was flat, while the Shenzhen Composite dipped 0.2%.

Japan’s Nikkei gained 1.7% as the government looked set to end the state of emergency in Tokyo and surrounding areas, raising hopes that the world’s third-largest economy may soon start recovering from recession. Air transport was the best performing sector, with shares in Japan Airlines and ANA Holdings rising strongly. East Japan Railway and West Japan Railway also surged on hopes that the economy would reopen.

Looking forward

On Tuesday, France releases its Business Climate Indicator for May, while Germany announces Gfk Consumer Climate for June. In Hong Kong and New Zealand, merchandise trade data is on tap for April. The US releases consumer confidence data for May and new home sales report for April.

Global stock markets

as at 25/05/2020
Source: Refinitiv DataStream, Price Index Returns in local currency. Past performance is not a reliable indicator of future results

 

Market

Close as at 25/05/2020

% change
25/05/2020

Net change

US

US: Dow Jones**

24465.2

0.00

0.00

US: S&P 500**

2955.5

0.00

0.00

Nasdaq: NASDAQ**

9324.6

0.00

0.00

Europe

MSCI Europe

1402.2

1.41

19.54

UK: FTSE All Share

3301.9

0.00

0.00

UK: FTSE 100

5993.3

0.00

0.00

Germany: DAX

11391.3

2.9

317.41

France: CAC 40

4539.9

2.15

95.35

Netherlands: All Share

761.2

1.41

10.58

Italy: S&P MIB

17595.9

1.61

279.61

Switzerland: SMI

9824.5

1.40

135.55

Spain: IBEX 35

6856.8

2.38

159.30

Sweden: OMX

1588.6

2.13

33.11

Asia

Japan: Nikkei

20741.7

1.73

353.49

MSCI Asia Pacific ex Japan

533.1

0.68

3.58

Hong Kong: Hans Seng **

22952.2

0.10

22.10

Australia: S&P/ASX 200

5615.6

2.16

118.60

China: Shanghai Shenzhen 300

3829.3

0.14

5.26

 

*This reflects the % amount that each market has fallen since its highest point in the last 12 months.
** US markets were closed for Memorial Day; UK markets were closed for a Spring Bank holiday.

The Longer-Term Perspective

The table below demonstrates that while we may experience some short-term weakness in markets, the longer-term performance remains encouraging.

Equity markets as at 25/05/2020
Source: Datastream, Price Index Returns in local currency

Market

% change
12 mths to 25/05/2020

% change
12 mths to 25/05/2020

% change
12 mths to 25/05/2020

% change
12 mths to 25/05/2020

% change
12 mths to 25/05/2020

US: Dow Jones

-4.38

3.36

17.41

18.10

-2.09

US: S&P 500

4.58

3.85

12.68

15.52

-1.67

Nasdaq: NASDAQ

22.10

2.73

19.80

26.77

-3.82

MSCI Europe

-9.79

-3.78

0.99

17.67

-12.56

UK: FTSE All Share

-17.07

-6.43

3.42

19.45

-9.79

UK: FTSE 100

-17.65

-5.85

2.83

20.04

-10.93

Germany: DAX

-5.16

-7.16

2.51

23.68

-13.63

France: CAC 40

-14.61

-4.08

3.85

19.09

-12.42

Netherlands: All Share

-6.43

-2.29

3.82

16.86

-10.28

Italy: S&P MIB

-13.64

-9.03

5.20

16.98

-21.83

Switzerland: SMI

1.63

10.36

-3.05

10.62

-12.68

Spain: IBEX 35

-25.26

-6.63

-10.16

19.87

-19.41

Sweden: OMX

1.09

-0.97

-3.17

19.88

-17.18

Japan: Nikkei

-1.78

-5.94

13.31

18.24

-17.91

MSCI Asia Pacific ex Japan

-5.33

-8.51

12.72

20.98

-16.74

Hong Kong: Hans Seng

-16.09

-10.57

19.34

25.84

-27.24

Australia: S&P/ASX 200

-13.02

7.01

4.20

7.76

-6.10

China: Shanghai Shenzhen 300

6.55

-5.83

9.49

13.94

-40.01

Note: all releases are listed in local time.