Shares in European markets showed modest gains in Friday's trading session, following a mixed performance in Asia where many markets were closed for the Lunar New Year holiday. Tokyo's stock market closed slightly higher, up less than 0.1%, after hitting a 34-year high earlier in the day. The boost came after a Bank of Japan official indicated that the central bank is likely to maintain its loose monetary policy even if it raises its benchmark rate above zero.
Meanwhile, Germany's DAX remained relatively unchanged at 16,973.32, and the CAC 40 in Paris also saw little movement at 7,665.13. On the other hand, Britain's FTSE 100 managed to rise 0.1% to 7,605.15. In the futures market, the S&P 500 gained less than 0.1%, while the Dow Jones Industrial Average remained unchanged.
Mainland China's markets were closed for the holiday, and in Hong Kong, which had a half-day session, the Hang Seng dropped 0.8% to 15,746.58. It's worth noting that Chinese markets will be closed for the entire upcoming week.
China's securities regulator took further measures to bolster the country's volatile financial markets by announcing punishments for insider trading and other crimes at one of the nation's biggest brokerages. This move is part of a broader effort to maintain stability in the Chinese financial system.
Turning to other Asian markets, Australia's S&P/ASX 200 managed to gain nearly 0.1%, reaching 7,644.80, while Thailand's SET index edged 0.2% higher.
In the United States, the stock market showed slight gains on Thursday, with the S&P 500 inching up 0.1% and the Dow setting a new all-time high, gaining 0.1%. The Nasdaq composite, on the other hand, rose 0.2%. These positive movements were driven by a report indicating fewer individuals applied for unemployment benefits in the previous week than expected.
Notably, investors have started to view positive economic news as a catalyst for stock market gains, as it indicates potential profit growth for companies. This shift in sentiment is a departure from previous months when good economic news sparked concerns of delayed interest rate cuts from the Federal Reserve. Presently, investors are optimistic that a strong economy will support a healthy stock market.
In commodities, U.S. crude oil futures gained 16 cents, trading at $76.38 per barrel on the New York Mercantile Exchange. The international standard, Brent crude, dipped 4 cents to $81.59 per barrel.
As for currencies, the U.S. dollar saw a slight increase against the Japanese yen, trading at 149.39 yen compared to 149.32 yen. The euro, on the other hand, saw a small decline, costing $1.0767 compared to $1.0780.
Overall, while some markets remained relatively stable, others experienced modest gains, reflecting a cautious sentiment among investors as they weigh various economic indicators and uncertainties. As global markets continue to navigate through the pandemic and economic recovery, investors are closely monitoring central bank policies, economic data, and the impact of geopolitical developments.
