European stocks opens high
With the worldwide risk appetite seems to be cautiously making a comeback European stocks are likely to open high as they are backed up by impressive performance both in Asia and America. According to Mr. Matt who is a dealer at CMC Markets, oil reached a five month high and this will be a good sign for the petrochemicals market even as some positive Chinese economic data is also making an addition to all this.
Mr. Matt called FTSE 100 index of London, which is reopening after a long time gap, up with 72.7 points at 4316.0. DAX index of Frankfurt was called down 6.4 pints at 4893.0 and CAC-40 index in Paris up by three points at 3241.0. He also observed one more thing which is the fading of the fear of swine flu as victims are still not informed properly outside Mexico.
In the meantime the share markets of Asia were also on the higher side with the coal miners and cyclical stocks growing in the worldwide economy. Though the trading was low with the markets of Thailand, Japan, and South Korea stayed closed. In Taiwan shares witnessed a growth of 0.7 percent after gaining twelve percent while Shanghai Composite Index added 0.3 percent with the approval of the plan of developing coastal economic area near Taiwan. Hang Seng Index of Hong Kong was 0.1 percent higher.
On Monday American stocks increased with the traders making a bet that economic recovery was soon approaching, providing desirable lift for the commodity processors and banking sector. The Standard & Poor’s 500 also shifted positive for the current year and it was closed at the topmost position since January 8th, it rose 29.71 points at 907.23. The Dow Jones Industrial Average increased 214.32 at 8426.72. This was their biggest close since January 13th. The Nasdaq Composite Index increased 44.34 and it closed at 1763.54 which was is biggest close since November 4th.
As for the currencies, the euro following its fresh run up at $1.3371 felt weaker from $1.3404. In the recent weeks the recent currency has rallied in the middle of a worldwide improvement in the risk appetite but on the other hand the euro zone is staying behind. Mr. Jan who is the head of Asian research at Rabobank was of the view that majority of the people will be concerned because of the development prospects in the euro zone didn’t improved as it did in America.
Mr. David who is a market analyst was of the view that the prices of the oil will probably test the $55 barrel level prior to facing the confrontation. In the meantime, the June bund futures agreement begun at 121.97, it came down by 0.02. In a different place spot gold was over nine hundred dollars a troy ounce, after a very impressive performance in New York.