Euro­pean stocks higher af­ter ex­tended break

The China Post - - BUSINESS INDEX & -

Europe’s main stock mar­kets ral­lied Tues­day, while the euro re­treated against the dollar, as in­vestors re­acted to U.S. eco­nomic data and debt moves by Greece in re­sumed trad­ing af­ter Easter.

The UK’s bench­mark FTSE 100 in­dex jumped 1.25 per­cent to 6,919.20 points com­pared with last Thurs­day’s close.

Frank­furt’s DAX 30 won 0.96 per­cent to 12,082 points and the CAC-40 in Paris gained 1.21 per­cent to 5,135.3 ap­proach­ing mid­day.

“Given the strong fin­ish in U.S. (stock) mar­kets on Mon­day in re­ac­tion to the sub­stan­dard U.S. un­em­ploy­ment re­port, it is un­sur­pris­ing to see Euro­pean mar­kets play catchup,” said Jasper Lawler, an­a­lyst at trad­ing group CMC Mar­kets.

Wall Street pro­vided a pos­i­tive lead Mon­day as com­ments from a Fed­eral Re­serve of­fi­cial sug­gested any rate in­creases would likely be slow, while in­vestors await the re­lease of min­utes from the bank’s lat­est meet­ing.

The U. S. La­bor Depart­ment said Fri­day the econ­omy added just 126,000 jobs in March, half of what was ex­pected and the weak­est growth since De­cem­ber 2013. While the data in­di­cates a U.S. slow­down, in­vestors were cheered as it means the Fed is un­likely to an­nounce any rate rise un­til later in the year.

“The re­ac­tion in the U.S. dollar to what was a big slow­down in the U.S. em­ploy­ment growth in March has ac­tu­ally been fairly san­guine,” Lawler said.

Lawler said that if the U.S. dollar re­turns to a down­ward spi­ral, “eq­ui­ties in Europe may not fare as well with­out the boon of a weaker euro to help ex­port mar­kets.”

Fo­cus dur­ing the lat­est short­ened trad­ing week was also on Greece, which Mon­day con­firmed it will make a 460 mil­lion euro (US$505 mil­lion) debt pay­ment to the In­ter­na­tional Mon­e­tary Fund as it seeks to al­lay con­cerns over the coun­try’s sol­vency.

Athens is bet­ting on this week’s Euro Work­ing Group meet­ings to give it some re­lief from its cred­i­tors.

Eu­ro­zone deputy fi­nance min­is­ters will meet on Wed­nes­day and Thurs­day in an at­tempt to reach an agree­ment on the Greek re­forms needed to un­lock the last tranche of its bailout pack­age.

“Greece is in traders’ good books for once af­ter the in­debted na­tion stated it would make good on the re­pay­ment to the IMF due on Thurs­day,” said David Mad­den, mar­ket an­a­lyst at deal­ers IG.

Greece’s “com­mit­ment to re­pay­ing its loans has helped eq­uity mar­kets in Europe,” he added.

Asian Shares Rally on Re­turn

from Hol­i­day

Asian mar­kets ad­vanced Tues­day as most re­opened af­ter a long hol­i­day week­end, in their first re­ac­tion to soft U.S. jobs data that has damp­ened ex­pec­ta­tions of an early U.S. in­ter­est rate rise.

Tokyo rose 1.25 per­cent as the yen eased against the dollar. The Nikkei added 242.56 points to 19,640.54.

Syd­ney added 0.46 per­cent, or 27.4 points, to 5,926.0, although it pared early gains af­ter the Re­serve Bank of Australia dis­ap­pointed many in­vestors by hold­ing off on an in­ter­est rate cut.

Seoul was flat, edg­ing up 0.60 points to 2,047.03, but Sam­sung ended lower de­spite pre­dict­ing bet­ter than ex­pected first-quar­ter prof­its.

Shang­hai surged 2.52 per­cent, or 97.45 points, to 3,961.38 — its high­est close since March 14, 2008.

Hong Kong was closed for a public hol­i­day.

The Dow climbed 0.66 per­cent Mon­day, the S&P 500 also rose 0.66 per­cent and the Nas­daq put on 0.62 per­cent.

Lower Re­cov­ery

“In­vestors ap­peared to sup­port a slower Fed rate lift­ing regime,” Michael McCarthy, chief mar­ket strate­gist in Syd­ney at CMC Mar­kets, said ac­cord­ing to Bloomberg News, be­fore adding “but this en­thu­si­asm could be short-lived as the ram­i­fi­ca­tions of a lower re- cov­ery sink in.”

Gold fetched US$ 1,212.72 against US$1,219.54 late Mon­day. In other mar­kets: — Welling­ton added 0.41 per­cent, or 24.04 points, to 5,855.43.

— Manila gained 0.56 per­cent, or 44.94 points, to 8,098.68.

— Jakarta closed up 0.79 per­cent, or 43.26 points, to 5,523.29.

— Bangkok rose 0.88 per­cent, or 13.48 points, to 1,549.53

— Mumbai rose 0.04 per­cent, or 12.13 points, to end at 28,516.59.

— Kuala Lumpur gained 0.74 per­cent, or 13.57 points, to close at 1,856.51.

— Sin­ga­pore rose 0.37 per­cent, or 12.71 points, to 3,465.62.

Newspapers in English

Newspapers from Taiwan

© PressReader. All rights reserved.