16 February 2018 (8:08 AM IST)
15 February 2018 (9:38 PM EST)
World stocks have opened in Asia for the last session of this week with positive but quite subdued numbers. Many stock markets are closed in Asia for the Lunar New Year holiday. In stock markets that are open for trading, Nikkei (Japan) is trading with big gains but main indexes in Australia and New Zealand are trading with just single digit gains.
SGX Nifty is only mildly positive, indicating a positive/flat opening in Indian stock markets today. U.S. and European stock futures are positive but again, with very mild numbers.
Why global stocks are showing this subdued trading pattern even though U.S. stock markets closed with big gains in overnight session?
Because the intraday trend in U.S. stock markets was highly volatile and early in the session, major indexes had even dropped below the red line before bouncing back to rally up. Dow Jones had opened 200 points higher, then lost all those gains and fell -50 down and then went up again to close with gains of 300 points,
This kind of volatility is making global stocks jittery as markets are still spooked by last week’s extremely choppy trading pattern in U.S. stock markets.
U.S. stock futures are trading quietly in the opening trading session, indicating a range bound pattern at this hour. As the session progresses, the intraday trend in U.S. stock futures can affect the trend in global stock markets.
Still, other markets are afraid to rally up in spite of this week’s big gains in U.S. stocks and mostly, different stocks markets are expected to trade on their local cues ad remain range bound in their weekly trading range.