Tue, 07 Jul 2020

European Markets Posting Solid Gains Despite Mixed Results in Asia

Voice of America
27 May 2020, 23:35 GMT+10

FRANKFURT, Germany - European markets closed in positive territory Wednesday, with investors apparently shaking off worries about China's tightening control over Hong Kong.

The FTSE index in London rose 1.26% by the close, Paris's CAC-40 index added 1.79%, while the DAX in Frankfurt rose 1.33%.

The trading day got off to a mixed start in Asia, with the indexes in both Hong Kong and Shanghai closing 0.3% lower, while the S&P/ASX in Sydney lost five points for the day, but was essentially unchanged percentage wise.

Japan's Nikkei index ended its trading day 0.7% higher, Taiwan's TSEC closed 0.1% higher, and Seoul's KOSPI gained 1.4 points but was also flat percentage wise.

The United States and other Western nations have denounced a proposed national security law for Hong Kong, which would prevent and punish acts of "secession, subversion or terrorism activities." Business groups have expressed concern the law could weaken Hong Kong's status as a global financial hub.

U.S. President Donald Trump has threatened to take action against Beijing if the law is approved, adding to increasing tensions between the world's two biggest economies.

Oil markets also trended downward Wednesday, with U.S. crude selling at $33.95 per barrel, down 1.4%, while Brent crude, the international benchmark, is down 1.5%, selling at $35.60 per barrel.

All three major U.S. indexes closed higher Wednesday. The Dow Jones Industrials rose 553.16 points, or 2.21%, to 25,548.27, the S&P 500 advanced 44.36 points, or 1.48%, to 3,036.13, and the Nasdaq Composite gained 72.14 points, or 0.77%, to 9,412.36.

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