Global Stocks Climb
October 12 2015 - 4:50AM
Dow Jones News
Global stocks edged higher Monday following a week of strong
gains for financial markets.
The Stoxx Europe 600 rose 0.2% in early trade, led by a 0.8%
rise in Germany's DAX index.
Chinese shares saw strong gains earlier Monday amid signs of
reform in the telecommunications sector and stimulus measures from
Beijing. The Shanghai Composite was up over 4% and Hong Kong's Hang
Seng Index rose 0.7%. Japan's markets were closed for a
holiday.
The moves come after a sharp rally in global stocks last week
following a rebound in oil prices and the prospect of continued
accommodative policy from the U.S. Federal Reserve.
Wall Street stocks ended higher Friday, sending the Dow Jones
Industrial Average to its best weekly performance since February on
gains in energy companies and expectations for a prolonged period
of ultralow U.S. interest rates. Low interest rates in the U.S.
have boosted global stock markets over the past several years.
"Markets are boosted by the prospect of no rate increase,
despite the fact that this suggests that the economy is therefore
weaker than previously thought," said Craig Erlam, senior market
analyst at Oanda.
At a meeting of the International Monetary Fund over the
weekend, central bank officials urged the Federal Reserve to
proceed with its rate increase in order to reduce uncertainty. Fed
Vice Chairman Stanley Fischer said Sunday that the U.S. central
bank is taking a cautious approach in light of developments
overseas and the effect of higher interest rates on emerging
markets.
Looking ahead, investors are awaiting key economic data releases
later in the week including retail sales and consumer prices
data.
Meanwhile, the third-quarter earnings season is set to continue
with major financial firms J.P. Morgan Chase & Co, Bank of
America Corp., Wells Fargo and Co., Citigroup Inc. and Goldman
Sachs Group Inc. due to report this week.
In currencies, the euro fell slightly against the dollar to
$1.1371.
In commodities, Brent crude was up 0.9% at $53.41 a barrel. Gold
was up 0.7% at $1164.10 per troy ounce.
Write to Riva Gold at riva.gold@wsj.com
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(END) Dow Jones Newswires
October 12, 2015 04:35 ET (08:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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