Timid European rebound coupled with Asian markets stock increase
June 26, 2014 6:50 am
European equity markets staged a mild rebound Thursday morning amid gains in Asian and US markets overnight. Traders are now focusing on some key US economic data releases in the form of jobless claims and inflation for further clues over the health of the world’s largest economy.
Major benchmarks in Europe are rebounding from a four-day losing streak with the Stoxx Europe 600 Index up 0.2%, London’s FTSE 100 up 0.1% and Frankfurt’s DAX up 0.2%. Standard & Poor’s 500 Index futures traded broadly flat while the MSCI Asia Pacific Index increased 0.7%.
The risk tone across global markets generally seems to have improved as traders view yesterday’s poor revision to first quarter GDP as a reason for a dovish Federal Reserve who will not raise interest rates any time soon.
At the same time, durable goods orders in the US came in better than expected, lifting hopes that the second quarter saw the economy turn a page. The violence in Iraq remains a source for great concern in markets, keeping up oil prices amid fears of disruption to supply.
In Baghdad, an attack by a suicide bomber in the southern part of the city was followed by a mortar attack that left a dozen dead and nearly 50 wounded, while Iranian drones reportedly provided assistance to the Iraqi government. Brent crude remains near its recent highs of $115 a barrel, currently trading flat $114 – these are levels not seen since September last year.
Over in Asia, stock markets rose amid optimism that the US economy is rebounding from the frozen spell during the winter period. South Korea’s Kospi index gained 0.7% while Australia’s S&P/ASX 200 Index added 1.1%. Hong Kong’s Hang Seng Index gained 1% while the Shanghai Composite Index advanced 0.6% on the back of successful debuts for a raft of Chinese IPOs which all shot up on first day of trade.
Over in Japan, Tokyo’s Nikkei 225 rose 0.2% while the yen strengthened against the US dollar for the second consecutive session, at Y101.75, compared with Y101.86 late Wednesday in New York. European currencies showed little change Thursday with the euro edging up to $1.3634 from $1.3629 but falling to Y138.71 from Y138.83.
The UK pound is trading flat at $1.6978 ahead of the Bank of England’s publishing of recommendations from the June 17 meeting of its Financial Policy Committee, which may include measures to cool the housing market.
European equity markets staged a mild rebound Thursday morning amid gains in Asian and US markets overnight. Traders are now focusing on some key US economic data releases in the form of jobless claims and inflation for further clues over the health of the world’s largest economy.
Major benchmarks in Europe are rebounding from a four-day losing streak with the Stoxx Europe 600 Index up 0.2%, London’s FTSE 100 up 0.1% and Frankfurt’s DAX up 0.2%. Standard & Poor’s 500 Index futures traded broadly flat while the MSCI Asia Pacific Index increased 0.7%.
The risk tone across global markets generally seems to have improved as traders view yesterday’s poor revision to first quarter GDP as a reason for a dovish Federal Reserve who will not raise interest rates any time soon.
At the same time, durable goods orders in the US came in better than expected, lifting hopes that the second quarter saw the economy turn a page. The violence in Iraq remains a source for great concern in markets, keeping up oil prices amid fears of disruption to supply.
In Baghdad, an attack by a suicide bomber in the southern part of the city was followed by a mortar attack that left a dozen dead and nearly 50 wounded, while Iranian drones reportedly provided assistance to the Iraqi government. Brent crude remains near its recent highs of $115 a barrel, currently trading flat $114 – these are levels not seen since September last year.
Over in Asia, stock markets rose amid optimism that the US economy is rebounding from the frozen spell during the winter period. South Korea’s Kospi index gained 0.7% while Australia’s S&P/ASX 200 Index added 1.1%.
Hong Kong’s Hang Seng Index gained 1% while the Shanghai Composite Index advanced 0.6% on the back of successful debuts for a raft of Chinese IPOs which all shot up on first day of trade.
Over in Japan, Tokyo’s Nikkei 225 rose 0.2% while the yen strengthened against the US dollar for the second consecutive session, at Y101.75, compared with Y101.86 late Wednesday in New York. European currencies showed little change Thursday with the euro edging up to $1.3634 from
$1.3629 but falling to Y138.71 from Y138.83.
The UK pound is trading flat at $1.6978 ahead of the Bank of England’s publishing of recommendations from the June 17 meeting of its Financial Policy Committee, which may include measures to cool the housing market.
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