A roundup of trading on major world markets:
NEW YORK – US markets were closed on Monday for the Martin Luther King public holiday.
LONDON – Europe’s main stock markets closed higher Monday, the start of a pivotal week for the region with the ECB forecast to announce fresh stimulus measures and Greece holding a snap election.
In London the benchmark FTSE 100 index climbed 0.54 per cent to end the day at 6,585.53 points compared with Friday’s close.
Frankfurt’s DAX 30 grew 0.73 per cent to a record high close of 10.242,35 points, while the CAC 40 in Paris gained 0.35 per cent to 4,394.93 points.
“European stock markets are starting the new trading week on a positive note seeing some early follow-through buying after last Friday’s steep gains,” said Markus Huber, senior analyst at broker Peregrine & Black.
“Increasing optimism that the ECB will finally announce QE (stimulus) during their monthly meeting later this week is continuing to drive investors into stocks. In addition a weak euro combined with low oil prices is stirring hopes that a sustained recovery for the eurozone isn’t far off.”
Stock indices had rallied Friday on fresh signals that the European Central Bank will launch a bond-buying stimulus program this week, news that has weighed heavily on the euro.
The chronically low level of inflation across the single currency bloc has fuelled concern the region could slip into deflation – a sustained and widespread drop in prices.
Britain, which is not part of the eurozone, also risks falling into deflation later this year.
While falling prices may sound good for consumers, deflation can trigger a vicious spiral in which businesses and households delay purchases, throttling demand and causing companies to lay off workers.
Such concerns have fuelled speculation that the ECB could launch a program of sovereign bond purchases known as quantitative easing or QE when it holds its first policy meeting of the year on Thursday.
HONG KONG – Asian stock markets have mostly risen following a rally on Wall Street and a strong pick-up in oil prices.
However, Shanghai has plunged almost eight per cent after regulators punished three major brokerages for rule violations.
The euro continued to struggle against the dollar and yen on Monday before this week’s European Central Bank (ECB) meeting that is expected to unveil a vast bond-buying scheme to kickstart the eurozone economy.
Tokyo rose 0.89 per cent, or 150.13 points to 17,014.29, Sydney gained 0.19 per cent, or 9.86 points, to 5,309.1 and Seoul closed 0.77 per cent higher, adding 14.49 points to 1,902.62.
However, Shanghai was hammered, diving 7.70 per cent, or 260.15 points, to close at 3,116.35 – its biggest fall since June 2008. Hong Kong fell 1.51 per cent, or 365.03 points, to end at 23,738.49.
WELLINGTON – New Zealand shares have risen as investors continued to seek high-dividend paying stocks.
The NZX 50 Index rose 21.411 points, or 0.4 per cent, to 5638.137 on Monday.
