Asian markets closed up on the first trading of the week by adding to their gains which were made last week. Although, it was a shaky start for the Chinese markets but the confidence among investors increased as the trading session gathered momentum. However, traders are still concerned that the spike in the interbank lending could initiate the cash crunch which we saw over the summer. Speculation did fade for a brief moment after the Central bank injected $49.4 billion dollar but if this can really work, we do not know the answer of this yet. The banking stock was certainly under the pressure during the session while the overall market grind higher.
The Hang Seng index was the best performer during the session and it closed higher with a gain of 0.48%. The index is up nearly by 1.39% in the past 5 days. The Shanghai index was the second best index during the session and it gained nearly 0.25%. However, the Nikkei was closed due to a holiday.
European stock markets are also trading higher this morning after posting a strongest gain last week in nearly eight months. Investors are certainly optimistic about the economic outlook for the next year but the volume in the market is weak due to the start of the holiday season. The FTSE 100 index is the best performing index during the session which is trading higher with a gain of 0.40%. The index is up by nearly 2.98% for the past five days. The Dax index is the second best performer and is also trading higher with a gain of 0.36%. The CAC 40 and the FTSE MIB are trading higher with a gain of 0.01%, and 0.02% respectively.