Global stock markets rebounded on Monday from last week’s big sell, as the fall in US Treasury yields eased inflation concerns, dealers said.
Wall Street shares soared open, with the Dow up 1.4%. The broader S & P 500 rose 1.5% and the high-tech Nasdaq Composite index rose 1.7%.
London stocks surged 1.2% in the afternoon trading, while Frankfurt rose 1.0% and Paris rose 1.3%.
Asian stocks rose sharply at bargain buys as President Joe Biden’s $ 1.9 trillion Covid bailout stimulus passed parliament and further cheers.
Oil prices rose before this week’s production conference between oil producers and their ally OPEC group, but the dollar rose against the euro and the yen.
“The stock market is seeing a strong rise as bond yields cool,” said David Madden, an analyst at online trading firm CMC Markets UK.
“Last week, stocks were under pressure as a surge in government bond yields urged traders to reduce their exposure to the stock market.
“The outlook for higher inflation on the horizon hasn’t disappeared, but the fear of higher living costs hasn’t had the same impact it once had.”
Markets fell last week, in parallel with a major US stimulus package, worried that a recovery in the global economy could fuel inflationary pressures and raise interest rates in the long run.
To calm the market, several central banks, including Japan, South Korea and the European Union, have repeatedly called for a promise to maintain ultra-loose monetary policy as long as necessary over the weekend.
Australia has led by increasing asset purchases to keep interest rates low.
“This is, in many ways, a die-cut rally effort,” said Patrick O’Hare, an analyst at briefing.com, and stock prices plummeted last week as investors headed for the exit as yields rose. did.
“This week we’ll start with repentance because we feel investors are repenting to leave the stock market,” he added.
The news that the Johnson & Johnson one-shot vaccine was approved by US regulators paved the way for a faster deployment of vaccination and added to Monday’s positive sentiment.
Crude oil prices will also rebound, focusing on Thursday’s main meeting of OPEC + groups in major producing countries to discuss significant production cuts that provided coveted support for prices.
Russia is said to be keen to turn on the faucet again, but Saudi Arabia prefers to maintain the status quo.
London-FTSE 100: 1.2% increase at 6,561.76 points
Frankfurt-DAX30: 1.0% increase at 13,924.18
Paris-CAC 40: up 1.3% at 5,777.35
EURO STOXX 50: 1.3% increase to 3,683.90
New York-Dow: 1.4% up at 3,683.90
Tokyo-Nikkei 225: 29,663.50, up 2.4% (closing price)
Hang Seng Index: 29,452.57, up 1.6% (closing price)
Shanghai-Comprehensive: 3,551.40, up 1.2% (closing price)
Euro / $: Fall from $ 1.2075 to $ 1.2054 at 2200GMT
Pound / dollar: rising from $ 1.3933 to $ 1.3935
Euro / Pound: Fall from 86.66 pence to 86.51 pence
Dollar / yen: Up 106.61 yen from 106.57 yen
Brent North Sea Crude: $ 64.72 / Barrel Up 0.5%
West Texas Intermediate: $ 61.58 / barrel up 0.1%
Global Markets Bounce Back From Last Week’s Slump Source link Global Markets Bounce Back From Last Week’s Slump