11 May, 2016
World stock markets rallied on Tuesday, fueled by a strong corporate earnings in Europe, including improvements on Greek debt talks and Japan’s new pledge in preparation to a weaker currency.
The MSCI All-Country World index increased by about 0.4 percent, along with the pan-European FTSEurofirst 300 index, which climbed by 1.3 percent, while the MSCI Emerging Market index also surges.
Meanwhile, U.S. equity index futures rallied by 0.5 percent, and an increase was seen in oil prices, led by Canada’s supply disruptions.
European stock markets remained steady on positive momentum from earlier in Japan, citing increase of 2.2 percent on Nikkei after Finance Minister of Japan Taro Aso reissued his tenacity to intrude in the currency market if the strengthening yen will continue to hurt Japan’s weak economic recovery.
After Aso commented, the yen was sent to its lowest level in nearly two weeks against the greenback, and strengthened conditions of central banks throughout the world searching for alternatives to improve the world economy.
The manager of Hampstead Capital hedge fund Lex Van Dam stated record low interest rates from the European Central Bank implies that stocks are still offered more encouraging returns compared to cash or bonds, while the manager of Clairinvest fund Ion-Marc Valahu said he had acquired European equity positions last week.
"Rates are not going anywhere, so buying any dips on the stock market might still be the best strategy," Van Dam said.
European equities find support from some steady corporate results.
Furthermore, Credit Suisse shares rallied after the bank released a smaller-than-expected loss in the first quarter, while jewelry manufacturer Pandora increased after posting encouraging profits and raising its financial overview.
Market players kept their guards up as they await the US labor data report, a strong reading of which could urge the Federal Reserve to increase interest rates this month – a decision that would be bearish for non-interest bearing gold...
The US economic growth has been sluggish in the first quarter, although not as strongly as initially expected, amid an increase in spending on home architecture and a constant increase in inventory investment by business...
Oil prices increased more than 1 percent on Monday after Goldman Sachs stated that the market has ended for nearly two years of oversupply subsequent to a global oil disruptions and a market deficit...
The Australian and New Zealand dollars rallied against the greenback on Wednesday, but gains were anticipated to stay capped by lower prices of crude oil...
Gold prices ticked higher as the greenback slid to 16-month lows during the session earlier. On the Comex division of the New York Mercantile Exchange, gold delivery for June rallied at $1,303.85 per troy ounce, advancing $6.55 or 0.51 percent...
Analysts forecast that Germany DAX would hit 0.06 percent higher when the market opens, while France’s CAC 40 was anticipated to remain steady. Meanwhile, UK markets are closed due to a public holiday.
Shares in the U.S. plummeted following the decline of the stocks in the Asian market as the Bank of Japan left the interest rate unchanged...
Wall Street futures dropped on Friday after the Dow issued its first decline of more than 1% in two months, while investors are closely watching on data...
International Energy Agency claimed that the oil prices would be stable again in 2017 as the non-OPEC oil producers were expected to limit their production this year...