World stocks mostly rally; London dips

AFP, LONDON: The world’s leading stock markets mostly rallied yesterday, with company share prices benefiting from a more positive outlook for the US economy, but London eased after recent strong gains.
Around 1000 GMT, London’s benchmark FTSE 100 index was down 0.1 per cent compared with Monday’s close.
In the eurozone, Frankfurt’s DAX 30 surged 1.5 per cent and the Paris CAC 40 jumped 1.6 per cent in value. Indices had rallied Monday, with Frankfurt soaring 2.1 per cent, mainly on the back of last Friday’s strong US jobs data, according to traders.
Markus Huber, a trader at City of London Markets, explained that the FTSE was lagging its eurozone counterparts, partly owing to a fall in share prices for heavyweight miners trading on the London index.
“The FTSE actually performed better in the past few weeks than some of the European indices and what we are seeing now is merely catching up by the rest of Europe,” he told AFP.  Other analysts pointed to the pound’s recovery as weighing on the FTSE.
In Asia, Tokyo’s main index yesterday led a region-wide markets rally for a second session running, fuelled by hopes of more central bank stimulus and following last week’s blockbuster US jobs report.
The gains extended a global advance that saw the S&P 500 on Wall Street close Monday at a record high for the first time in 14 months.
Tokyo’s Nikkei index ended yesterday with a gain of 2.5 per cent, adding to the four-per cent surge clocked up Monday.
Share prices were boosted by the yen’s retreat against the dollar since a huge win for Japanese Prime Minister Shinzo Abe’s coalition in weekend elections.
Abe said Monday his government would draw up new measures in his latest push to kickstart Japan’s torpid economy.
The fall in the yen provided much-needed support for Japan’s exporters after the haven currency surged in response to the Brexit vote.
The pound meanwhile surged back above $1.30 yesterday, as dealers breathed a sigh of relief that Britain’s ruling Conservatives had a new leader and the country a prime minister after David Cameron’s resignation.
Theresa May will take the reins today after her only opponent for a September leadership vote quit. The news provided a little certainty for the country as it looks to untangle itself from the EU over the coming years.
“An aggressive rebound from the pound is hampering the FTSE this yesterday, while the eurozone indices are surging forth with their recovery,” said Connor Campbell, analyst at traders Spreadex.
“In contrast to the FTSE, the DAX and CAC relished the relatively weakened euro.”
Campbell added that “sterling’s rise... seems to have stemmed from Theresa May’s appointment as prime minister”.

 

 

World stocks mostly rally; London dips

AFP, LONDON: The worlds leading stock markets mostly rallied yesterday, with company share prices benefiting from a more positive outlook for the US economy, but London eased after recent strong gains. Around 1000 GMT, Londons benchmark FTSE 100 index was down 0.1 per cent compared with Mondays close. In the eurozone, Frankfurts DAX 30 surged 1.5 per cent and the Paris CAC 40 jumped 1.6 per cent in value. Indices had rallied Monday, with Frankfurt soaring 2.1 per cent, mainly on the back of last Fridays strong US jobs data, according to traders. Markus Huber, a trader at City of London Markets, explained that the FTSE was lagging its eurozone counterparts, partly owing to a fall in share prices for heavyweight miners trading on the London index. The FTSE actually performed better in the past few weeks than some of the European indices and what we are seeing now is merely catching up by the rest of Europe, he told AFP. Other analysts pointed to the pounds recovery as weighing on the FTSE. In Asia, Tokyos main index yesterday led a region-wide markets rally for a second session running, fuelled by hopes of more central bank stimulus and following last weeks blockbuster US jobs report. The gains extended a global advance that saw the SP 500 on Wall Street close Monday at a record high for the first time in 14 months. Tokyos Nikkei index ended yesterday with a gain of 2.5 per cent, adding to the four-per cent surge clocked up Monday. Share prices were boosted by the yens retreat against the dollar since a huge win for Japanese Prime Minister Shinzo Abes coalition in weekend elections. Abe said Monday his government would draw up new measures in his latest push to kickstart Japans torpid economy. The fall in the yen provided much-needed support for Japans exporters after the haven currency surged in response to the Brexit vote. The pound meanwhile surged back above $1.30 yesterday, as dealers breathed a sigh of relief that Britains ruling Conservatives had a new leader and the country a prime minister after David Camerons resignation. Theresa May will take the reins today after her only opponent for a September leadership vote quit. The news provided a little certainty for the country as it looks to untangle itself from the EU over the coming years. An aggressive rebound from the pound is hampering the FTSE this yesterday, while the eurozone indices are surging forth with their recovery, said Connor Campbell, analyst at traders Spreadex. In contrast to the FTSE, the DAX and CAC relished the relatively weakened euro. Campbell added that sterlings rise... seems to have stemmed from Theresa Mays appointment as prime minister.