Dubai: Investors are still looking for central banks to lift the economy.
European stocks rose on the first trading day of May on expectations of further monetary stimulus from the European Cental Bank and the Bank of Japan.
“European equities remain supported by ECB quantitative easing measures and an improving domestic sector,” Vaqar Zuberi, Portfolio Manager and Senior Analyst with Mirabaud Asset Management’s Hedge Fund team told Gulf News.
The German DAX index was up 0.83 per cent to be at 10,123.21, while the CAC 40 Index was up 0.46 per cent to be at 4,449.12. In the US, stock indices came off its high registered last week amid corporate results, while worse than expected US manufacturing data, that slumped to its lowest level since April 2009, kept the gains in check.
The Dow Jones Industrial Average was 0.50 per cent higher at 17,847.59, after rising as much as 17,851.17, while S&P 500 index was 0.21 per cent higher at 2,069.62, after gaining as much as 25 per cent since February.
“Outside of the US, traders are expecting more stimulus from European Central Bank and Bank of Japan as their economy is still under stress and on deflation fears,” Pradeep Unni, head of trading at Richcomm Global Services said
Earlier in the day, the Nikkei index ended down 3.11 per cent at 16,147.38 on stronger yen. Elsewhere in Asia, Indian Sensex index ended 0.66 per cent lower at 25,436.97. Most of the other markets in Asia were shut.
No hurry:
Going ahead, investors would closely monitor any pronouncements from members of the US Federal Reserve after the full committee showed no hurry to raise rates during last week’s meeting. “Investors are expecting markets to remain steady this week as they digest further corporate earnings results,” Zuberi said.
Meanwhile, Brent crude came off from its highest level in 2016 struck last week as near record production in Iraq weighed on prices.
Brent crude for June delivery fell 2.07 per cent to be at $46.40 per barrel, after rising as much as $48.50 on Friday. WTI crude was down 1,79 per cent at $45.10 per barrel. Oil prices have risen 20 per cent or more in April.
“The market continues to be over supplied, a condition which is expected to be corrected in the second half of the year as production is decreased,” Zuberi said.
In the US, last week’s data confirmed the trend of decreased production, with output down about 300,000 barrels per day since the beginning of the year.
