European stocks start week positive
European stocks clawed their way higher on Monday as world markets began the week in a relatively upbeat mood following further signs last week that economies are recovering rapidly.
The start to the week was relatively quiet, however, as investors refrain from taking on large positions ahead of a twoday Federal Reserve meeting beginning on Tuesday and quarterly gross domestic product numbers for the United States. The general sentiment remained bullish with Wall Street hitting another intraday record-high on Friday and European shares not far off record highs in early Monday trading.
The broader Euro STOXX 600 gained 0.23% while Germany’s DAX rose 0.22%. Britain’s FTSE 100 climbed 0.21%.
Asian shares also rallied where MSCI’s broadest index of Asia-Pacific shares outside Japan reached its highest since March 18, despite a late sell-off in Chinese shares.
Wall Street futures pointed to a slightly weaker open. The MSCI world equity index, which tracks shares in 49 countries, rose 0.2%.
Stocks are basking in a massive rally - the MSCI world index has suffered only three down months in the past 12 and is up nearly 5% this month and 9% for the year as investors bet on a rapid post-pandemic economic rebound turbocharged by vast government and central bank stimulus.
Recent data pointing to a solid global economic recovery has only served to bolster confidence. Strong corporate earnings and the continued rollout of COVID-19 vaccinations in developed economies have also supported sentiment.
Early April manufacturing activity indicators out last week pointed to a robust start to the second quarter with data hitting record highs in the United States and signalling an end to Europe’s double-dip recession.
First-quarter U.S. gross domestic product data due later in the week is likely to show activity probably returned to pre-pandemic levels, analysts said.
In commodities, U.S. crude fell 57 cents to $61.57 per barrel and Brent eased 57 cents to $65.64.
Gold climbed 0.1% to $1,779 an ounce.