GulfBase Live Support
21/04/2015 00:42 AST
Global equity markets snapped back on Monday from a worldwide decline the previous session on China’s steps to stimulate its economy and solid corporate earnings, while the euro weakened amid worries that Greece may default.
European stocks shrugged off declines in Asia where Chinese shares fell sharply on fears of a regulatory crackdown on the world’s hottest stock market, which offset the People’s Bank of China’s most aggressive move yet to bolster the slowing economy.
The Chinese central bank reduced the amount of cash banks must hold as reserves in a move to help spur lending and combat a slowing economy.
“What’s helped the market today is the story about more stimulus in China,” said Rick Meckler, president of hedge fund LibertyView Capital Management in Jersey City, New Jersey.
The stimulus aims to overcome a stubborn lack of growth and US equity investors are responding to earnings that are good but not enough to push shares to new record highs, Meckler said. The US stock market remains range-bound, he said.
In Europe, mining stocks helped Britain’s top share index rebound on China’s stimulus measures to support stuttering growth in the world’s biggest consumer of metals. The FTSE 350 mining index rose 1.9 per cent.
MSCI’s all-country world index rose 0.43 per cent while the pan-European FTSEurofirst 300 index of top regional shares gained 0.8 per cent to 1,619.92.
Shares also rose on solid corporate results. Investment bank Morgan Stanley reported its most profitable quarter since the financial crisis. Shares rose 1.1 per cent to $37.17.
On Wall Street, the Dow Jones industrial average rose 226.05 points, or 1.27 per cent, to 18,052.35. The S&P 500 gained 18.14 points, or 0.87 per cent, to 2,099.32 and the Nasdaq Composite added 41.83 points, or 0.85 per cent, to 4,973.64.
The euro slid against the dollar amid worries that Greece might leave the single currency zone.
Agencies
Index | Closing | Change |
---|---|---|
NIKKEI 225 | 21,292.29 | -96.29 (-0.45 |
DAX | 12,002.45 | -94.28 (-0.77 |
S&P 500 | 2,614.45 | 32.57 (1.26 |
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