Europe stocks rebound, Asia subdued by China data
AP and AFP
August 19, 2014, 12:05 am TWN
HONG KONG--European stocks bounced back Monday from Ukraine-related selling while Asian markets were subdued by further signs of weakness in China's property market.
Germany's DAX jumped 1.5 percent to 9,229.97 and France's CAC 40 added 1.2 percent to 4,225.37. Britain's FTSE 100 rose 0.6 percent to 6,726.92. European markets tumbled Friday on reports Ukraine destroyed a Russian military convoy that had entered its east. Futures pointed to gains on Wall Street, with Dow futures up 0.4 percent to 16,705. S&P 500 futures added 0.4 percent to 1,961.
Ukrainian army troops penetrated deep inside a city controlled by pro-Russian rebels in eastern Ukraine in what could prove a breakthrough development in the four-month-long conflict, the Ukrainian government said Sunday. That came after NATO on Friday said a Russian military column ventured into Ukraine, and the Ukrainian president said his forces destroyed most of it. Russia denied it.
Central bankers, policy experts and academics from around the world meet at Jackson Hole, Wyoming for an annual talkfest later this week. U.S. Federal Reserve Chair Janet Yellen's speech Friday on the U.S. labor market is expected to “reiterate her views that slack remains substantial, and that the Fed should keep monetary policy accommodative still in order to address that,” Mihuzo Bank said in a commentary.
Asian shares mostly rose Monday, also weighing on sentiment was a report showing China's foreign direct investment slumped to a two-year low, adding to a series of downbeat data about the world's second largest economy.
But bargain hunting pushed Shanghai higher, rising 0.57 percent, or 12.74 points, to an eight-month closing high of 2,239.47. Hong Kong ended flat, edging up 0.52 points to 24,955.46.