Chinese stocks continued their upward trend today, with NIO (NIO, Financial) soaring over 10% and Alibaba (BABA) rising more than 6% in pre-market trading. This comes after NIO’s recent bullish performance and favorable monetary policies in China. Meanwhile, the Japanese yen saw gains following the election of a pro-loose monetary policy leader in Japan, reversing an earlier decline of over 0.5%.
Yesterday, China announced a reduction in mortgage rates and introduced measures to relax property purchase restrictions in key cities like Shanghai, Guangzhou, and Shenzhen, boosting the real estate sector.
However, most other Asia-Pacific markets were down. The Japanese stock market dropped nearly 5%, while South Korean and Taiwanese markets opened lower and continued to fall. Commodity futures rose, driven by supportive real estate policies, leading to significant gains in the industrial metals sector.
European stock markets opened lower and continued their downward trend, with auto stocks leading the declines. Stellantis and Aston Martin saw substantial drops due to a slowdown in the automotive industry. Investors are also facing multiple risks, including escalating Middle Eastern tensions and political shifts in Europe.
As the U.S. market opened, major indices showed slight declines. The Nasdaq dipped 0.02%, the S&P 500 fell 0.12%, and the Dow dropped 0.34%. Nvidia (NVDA) fell over 2.5%, while Apple (AAPL) rose 0.88%. The Nasdaq Golden Dragon China Index climbed 4.53% with popular Chinese stocks like JD.com (JD) surging over 5%, NIO (NIO, Financial) spiking over 15%, and Trip.com (TCOM) rising more than 3%.
Throughout the day, European stocks, particularly in the automotive sector, continued to fall with Stellantis dropping nearly 14%, Renault down almost 6%, and Volkswagen declining by 2.7% following earnings warnings.
Bitcoin fell below $64,000, down 3% for the day. Despite a monthly gain exceeding 12%, it experienced a slight pullback today, decreasing about 1.7%.
Global oil prices continued to rise, with U.S. crude trading at $68.28 per barrel. Major geopolitical developments over the weekend in the Middle East contributed to the increase, with Goldman Sachs noting that current oil prices have not yet factored in these geopolitical risks.
