China stocks continue to advance as Shanghai bull market begins.
With the Shanghai Composite Index passing a milestone on Tuesday, rising 20 percent since December 3, investors respond enthusiastically as the Shanghai bull market begins. That magnitude of an advance is considered by many as the signal for the onset of a new bull market. China stocks have benefited from the government’s efforts to support urban development. The January 24 release of the HSBC Flash China Manufacturing PMI boosted investor confidence, as it reached a 24-month high of 51.9, signaling expansion. The Shanghai Composite Index advanced 0.53 percent to 2,358 (NYSEARCA:FXI). Hong Kong’s Hang Seng Index dipped 0.07 percent to 23,655 (NYSEARCA:EWH).
The major European stock indices were relatively unchanged on Tuesday in the absence of any significant developments (NYSEARCA:VGK).
As of 11:09 EST, the Euro STOXX 50 Index advanced 0.05 percent to 2,745 – staying well above its 50-day moving average of 2,638. After breaking above its resistance level of 2,700 on January 21, the STOXX 50 is once again attempting a sustained advance above that level, which has been a barrier since the beginning of the new year. Its Relative Strength Index is 67.57 (NYSEARCA:FEZ). The FTSE 100 Index climbed 0.58 percent to 6,328 (NYSEARCA:EWU). The German DAX Index rose 0.09 percent to 7,838 (NYSEARCA:EWG). France’s CAC 40 Index crept upward by 0.01 percent to 3,781 (NYSEARCA:EWQ). Spain’s IBEX 35 Index fell 0.48 percent to 8,630 (NYSEARCA:EWP). Italy’s FTSE MIB Index declined 0.13 percent to 17,873 (NYSEARCA:EWI).
As of 11:23 EST, the euro advanced 0.17 percent against the dollar, trading at $1.3479 (NYSEARCA:FXE). Dollar Lower vs. Euro, Yen Ahead of Fed, U.S. Data
Spain’s ten-year bond yield climbed to 5.14 percent on Tuesday from Monday’s closing level of 5.01 percent. Spain’s two-year bond yield declined to 2.45 percent on Tuesday from Monday’s closing level of 2.50 percent (NYSEARCA:EWP).
Italy’s ten-year bond yield declined to 4.19 percent on Tuesday from Monday’s closing level of 4.23 percent (NYSEARCA:EWI).
On London’s ICE Futures Europe Exchange, March futures for Brent crude oil advanced by 70 cents (0.62 percent) to $114.18/bbl. (NYSEARCA:BNO, NYSEARCA:USO).