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Stocks Surge in Europe as Asian Markets Struggle

US markets are closed for Labor Day
By Newser Editors and Wire Services
Posted Sep 7, 2020 2:12 PM CDT

(Newser) – European stocks rallied on Monday after a mixed close in Asia, while Wall Street remained closed for Labor Day after turning in its biggest weekly decline in more than two months. In Europe, the FTSE 100 in London rose 2.4% to close at 5,937.40 and Frankfurt's DAX added 2% to 13,100.28 after industrial production figures showed a third consecutive monthly increase, the AP reports. The CAC 40 in Paris rose 1.8% to 5,053.72. In Asia, the Shanghai Composite Index lost 1.8% to 3,292.59 after Chinese customs data showed August export growth accelerated to 9.5% over a year earlier while imports edged lower. The Nikkei 225 in Tokyo shed 0.5% to 23,089.95 while the Hang Seng in Hong Kong lost 0.4% to 24,589.65. The Kospi in Seoul advanced 0.7% to 2,384.42.

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On Friday, the S&P 500 slid 0.8%. The Dow lost 0.6% and the tech-heavy Nasdaq dropped 1.3%. Investors have been encouraged by hopes for a coronavirus vaccine and central bank infusions of cash into struggling economies. But forecasters warn the rise in prices might be outrunning uncertain economic activity as case numbers rise in the United States and some other countries. Some are re-imposing anti-disease controls that disrupt business. “The question now is whether there will be a sustained unwinding in this frothy market, or if conviction about fresh central bank liquidity and fear of missing out kicks in once again,” analysts at Mizuho Bank said in a report.

(Read more stock market stories.)

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