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BCN-09
EUROPE-MARKETS-STOCKS
European stock markets spring higher
LONDON, March 2, 2019 (BSS/AFP) – Global stock markets rose Friday as
investors reacted to a mixed batch of global economic data and appeared
confident that US-China trade talks will yield a positive outcome.
European stock markets showed solid gains by the close and Wall Street was
also up in the late New York morning.
“The first day of the new month has started positively for equities,” said
Fawad Razaqzada, market analyst at Forex.com .
“Sentiment improved on the back of positive US-China trade talks and as
major central banks have reiterated the need for interest rates to remain low
for longer,” he said.
This put markets “on course for a more positive end to the week”, said
Craig Erlam, senior market analyst at Oanda trading group.
– Asia set the tone –
A better-than-expected reading on US economic growth lifted sentiment
earlier in Asia while optimistic comments from a top White House economic
advisor on the China-US trade talks also provided support.
The gains helped Asia to another strong week despite disappointment over
US-North Korea talks in Hanoi and tensions in Kashmir.
Shanghai’s main stocks index led the gains, surging 1.8 percent and
extending a rally that has seen it climb by about a fifth since the start of
the year thanks to expectations over the US-China trade talks.
Adding to the interest in mainland equities was news that index compiler
MSCI will increase the weighting of Chinese-listed stocks in its benchmark
indices and nearly double the number of companies included.
With those indices used by global funds for their investments, the move is
expected to attract tens of billions of dollars more to the country’s
markets.
– Trade, Brexit –
In Europe, eurozone annual inflation rose to 1.5 percent in February, up
from 1.4 percent in January, while unemployment in the single currency area
remained stable at 7.8 percent.
On currency markets, the dollar traded mixed, while the pound eased amid
jitters about Britain leaving the European Union this month, but investors
still hoped that there will be some kind of Brexit deal in place by then.
“The market is now moving on the premise that the US-China talks are
making progress, and that ‘a no-deal Brexit’ would be avoided,” Resona Bank
said in a commentary.
However, it warned: “It should be noted that there are risks that
ultimately there may be no deals.”
BSS/AFP/HR/09