Market update: A sense of calm returns to markets — European and Asian markets up this morning – 28.05.2013

Source: Henderson Global Investors

US markets were closed for the Memorial Day holiday on Monday. On Friday both the Dow Jones and S&P 500 indices closed almost flat, ending a week where the Federal Reserve chairman’s comments sparked speculation on an early end to quantitative easing, down 0.3% and 1.1% respectively.

Trading in Asia has been strong overnight. In Japan, the Nikkei 225 recouped its losses from the day before to close up 1.2% helped by a weaker yen and soothing comments from the economy minister. Other Asian markets also ground higher; the Hang Seng closed up 1.0% with industrials and exporters in the lead, and Australian bank shares advanced helping the S&P/ASX 200 index to close up 0.2%. While the UK was on holiday, European stocks advanced on Monday helped by bid activity. The positive sentiment continues this morning. At the time of writing, the UK market is on firm ground (FTSE 100 +1.5%) while European stocks climb for a second day (FTSE Eurofirst 300 +1.3%).