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Gulf Today Report

Asian shares fell on Monday following report of US sanctioning some Chinese officials and fall in oil prices as virus cases soar. 

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.1% following four straight sessions of gains. The index hit a record high of 644.3 points early on Monday.

China's blue-chip index dropped 0.8%, largely ignoring strong export data, while Hong Kong's Hang Seng was down 1.7%.

Japan's Nikkei declined 0.46% while Australian shares were up 0.6%.

According to Kyle Rodda, market strategist at IG Markets in Melbourne, the market has been wary of Trump's decision on China as he prepares to vacate the presidential seat.

"At the end of the day, the market knows he only has six weeks left. The broader focus is still on vaccine roll-outs and US fiscal stimulus,” Rodda added.

In the beginning, Asian markets recorded high gains as investors remain hopeful for a vaccine-led economy. 

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European Shares

European shares declined on Monday as tension thickens between the United States and China and the rising fear of Brexit without a trade deal. 

The pan-European STOXX 600 index fell 0.7% with banks leading losses as eurozone bonds yield fell. 

Finance-heavy indexes in Spain and Italy slipped more than 0.8%, while France's CAC 40 fell 1% after scaling a more than nine-month high on Friday.

DAX index in Germany lost 0.8% following reports of impending sanctions on some China officials by the US because of their role in Beijing’s disqualification of elected opposition legislators in Hong Kong. 

"US-China relations was the hot topic last year and at the start of this year, so any return to that... is going to weigh on markets as they pull back from some very high levels," said Connor Campbell, a financial analyst at Spreadex.

London’s FTSE 100 gained 0.3% this week as Britain prepares to start vaccinating its residents.