Stock markets rebounded on Monday and the dollar hit a two-month high against the yen, as strong US economic data showed. And Germany have left investors increasingly confident about the strength of the global economy.
The focus has also become the biannual testimony of the Federal Reserve Janet Yellen on monetary policy and a meeting of Canada’s central bank on Wednesday to the latest signals from the policy of major central banks.
For now, uneasiness about the end of an ultra-cheap money era has given way to optimism about global growth, with the stronger-than-expected US non-farm employment report reflecting risk appetite. Data Monday showed that exports from Germany, Europe’s largest economy, rose more than expected in May.
The STOXX 600 across Europe rose 0.4 percent, banks and public services being the strongest sectors. The stock markets of London .FTSE Blue, Paris and Frankfurt .FCHI. GDAXI increased from 0.2 to 0.5%. [.EU]
They followed gains in Asia, where MSCI Asia Pacific’s largest share indices out of Japan. The MIAPJ0000PUS rose 0.3 percent and Japan’s Nikkei .N225 gained 0.8 percent to a one-week high, thanks to the weakness of the Japanese currency.
The MSCI Emerging Markets Index .MSCIEF posted its best day in two weeks. American futures ESC1 1YMc1 were largely stable after strong earnings on Wall Street on Friday.
“Stocks opened higher earlier this week, the dollar continues to enjoy glorious non-existent agricultural data roster, and yields of US bonds reach the key level of 2.4%,” said Kathleen Brooks, director of index research Of the city of London.
“This week develops to be critical for the publication of data, central bank talks and results of operations, and this could add a major director in asset prices throughout the summer months.”
The dollar rose nearly 0.4 percent to 114.29 yen JPY = D4, peaking at two months, while the dollar index – which measures the dollar against a basket of other major currencies – was a little firmer To 96,142 DXY. The euro was softer at $ 1.1388.
Oil prices have fallen, which has extended losses at the end of last week after strong drilling activity in the US. And many supplies from OPEC and OPEC.
Crude futures Brent LCOc1, the international benchmark for oil prices rose to $ 46.27 a barrel, 50 cents, or about 1%, from its latest close.
The central banks of FOCO
A generally tougher tone by the European Central Bank, the Bank of England and the Bank of Canada over the past two weeks has boosted market expectations as central bank policy is at a crossroads. The Federal Reserve System has raised rates twice this year and is still tightening towards the end of the year.
The Bank of Japan offered on Monday that its more optimistic view of regional economies for more than a decade in strength of exports and private consumption, emphasizing its conviction, a steady recovery is gaining momentum.
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However, Bank of Japan Governor Haruhiko Kuroda reiterated his commitment to maintaining an ultraflexible monetary policy until inflation is stable above its 2 percent target.
“Unlike previous years, when there was very uneven growth in the world, we are witnessing a synchronized recovery in the global economy,” said Alex Dryden, global market strategist at JP Morgan Asset Management.