European equities rise on Monday, as the
European Central Bank’s quantitative easing program outshines concerns about Greek debt talks and more hawkish monetary policy in the
US.
The Xetra Dax 30 in Frankfurt is up 0.5 per cent, with London’s FTSE
100 up 0.4 per cent and the international FTSE Eurofirst 300 0.4 per
cent stronger, says The Financial Times.
The sentiment is being underpinned by a further pause in the dollar’s surge. The greenback is generally easing, with the dollar index down 0.4 per cent at 99.881.
The common currency is finding support around the $1.053 level, trading up
0.4 per cent at $1.05338.
“Although US markets are buckling under the threat of a hawkish Fed,
European equities appear to be able to shrug off all and any negative
cues due to the ECBs dovish monetary policy,” said Jonathan Sudaria at
London Capital.
European gains are following the rally on China’s stock market, which started the week reaching a new five-year high in an otherwise subdued trading environment.
The Shanghai Composite gained 1 per cent to 3,410, on track for its
highest close since August 2009. The benchmark has now risen 5.4 per
this quarter, following a 37 per cent climb in the final three months of
2014 driven by a surge of trading volumes and retail account openings.
Stock market bulls were encouraged over the weekend, as Premier Li Keqiang said at China’s annual National People’s Congress that further steps could be taken to ensure China hits its growth target of “around 7 per cent”.
“If our growth speed comes close to the lower limit of its proper range and affects the employment and increase of people’s incomes, we are prepared to step up targeted macroeconomic regulation to boost market confidence,” he said.
In general, Asian markets began the new week on a subdued note. Japan’s Nikkei 225 average rose 0.2 per cent, but the broader Topix was flat. Hong Kong’s Hang Seng added 0.2 per cent.
Australia's S&P/ASX 200 lost 0.3 per cent, led by a 2.1
per cent decline for the energy sector.
Oil-related stocks weighed on the market as the price of Brent crude oil fell 2.5 per cent at the open to $53.33 per barrel, its lowest since January 30, before rebounding slightly to $54.17.
Brent crude fell down another 1 per cent at
$54.10 a barrel.
Gold is up 0.3 per cent at $1,162.21 an ounce.
