Dubai:
European stocks rose on Monday, extending its last week’s rally, while gold fell to its lowest level in seven weeks, after Greece received a four-month bailout extension and investors are closely following reactions to the deal.
The government in Athens has until the end of Monday to complete a list of policies in return for continued funding after talks concluded late on February 20. The Greek reform measures are still subject to validation by the International Monetary Fund, the European Central Bank and the European Commission.
The EURO STOXX 50 was 0.41 per cent higher at 3,504.70, while Deutsche Boerse AG German Stock Index was 0.44 per cent higher at 11,099.67. Spain’s IBEX 35 index was up 0.63 per cent at 10,947.90, while Italy’s FTSE MIB index was 0.19 per cent higher at 21,884.81. Greece markets were closed for a holiday.
“European equities would continue to do well as valuations had gone very low. Though Grecce would continue to cause some nervousness,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group. Investors would also eye the Federal Reserve Chair Janet Yellen’s semiannual address to the Senate Banking Committee on February 24, and a slew of data from the US.
Earlier in the day, Asian markets rose with South Korea and Japan leading the gains. Korea Stock Exchange KOSPI ended 0.35 per cent higher at 1,968.39, while Nikkei 225 index ended 0.73 per cent higher at 18,466.92.
Gold falls
Gold fell to its lowest level in seven weeks as the Greece deal eroded the safe haven appeal of the yellow metal. The Swiss franc shed over 1 per cent against the dollar, dropping towards five-week lows.
International spot gold was down 0.28 per cent at $1,198.59 an ounce, after falling 0.9 per cent to its lowest level since January 9 at $1,191.01.
The absence of China, the world’s No 2 gold consumer, where markets have been shut since Wednesday for the Lunar New Year holiday also weighed on sentiment.
Brent crude fell more than 2 per cent on worries of oversupply. Brent crude for March delivery was 2.34 per cent lower at $58.76 per barrel. NYMEX WTI crude was also down 3.48 per cent at $49.04.
