Stocks extend global recovery, set for sixth day of gains
london — World stocks were set for a sixth session of gains on Monday, extending a recovery from a selloff sparked by fears of creeping inflation and higher borrowing costs.
Gains were marginal however, and scored largely in Asian markets, with Japan’s Nikkei 225 up 2 per cent. European bourses gave up initial gains to turn lower, with the pan-European STOXX index down 0.2 per cent. Trading was slower than usual due to market holidays in the United States and China, but moves in the steel sector were pronounced in the wake of the US government outlining proposals for hefty import curbs. Shares in Tenaris, Outokumpu and Arcelor Mittal — which have facilities in the United States — were the biggest gainers in Europe, up between 2.2 and 4.6 per cent.
The MSCI world index, which tracks shares in 47 countries, was up 0.1 per cent. The index has recovered nearly half of its losses from late January to last week’s low, posting a gain of 4.3 per cent last week. That was its best weekly performance since December 2011. “Market confidence often attracts even more market confidence, and that is what we are seeing at the moment,” said David Madden, markets analyst at CMC Markets.
Gold prices held steady on Monday as a wavering dollar and rising equity markets offset rising inflation expectations that have spurred recent safe-haven purchases of the metal. Spot gold was mostly unchanged at $1,347.50 an ounce by 0824 GMT. — Reuters