Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Business https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ European stocks are gathering as investors begin in May with bullish sentiment from Reuters

European stocks are gathering as investors begin in May with bullish sentiment from Reuters


© Reuters. FILE PHOTO: The screen shows the average and stock indexes of Nikkei outside a brokerage company in Tokyo


By Tommy Wilkes

LONDON (Reuters) – European stocks won on Monday when investors were interested in the global economic recovery, expecting a busy week for US economic data, which is expected to highlight the strength of the recovery.

After China, Japan and Britain closed for public holidays, volumes were weak and Asian stocks began slowly, with most markets slipping red.

But investor optimism, boosted by strong corporate earnings growth over the past two weeks, widened in May in Europe.

The Euro STOXX index rose 0.68% at the beginning of trading, while the German gained 0.7% and 40 0.61


Wall Street futures were higher, pointing to even more gains after stock markets reached a new round of record highs last week.

MSCI’s global equity index, which tracks stocks in 49 countries, remained unchanged during the day and below record highs as losses in Asia offset gains in Europe.

Supporting investor enthusiasm for riskier assets is the feeling that the global economy is about to thrive as countries emerge from blockade and consumers and businesses release some of their excess savings accumulated over the past year.

Retail sales in Germany for March came far better than expected, proving that the US-led economic boom is now gaining popularity elsewhere.

Recent business studies also point to growing confidence in recovery, although some economists believe that business may be ahead of itself and more affected by the success and speed of the introduction of COVID-19 vaccinations.

“The data has been unrealistically strong in recent months – while the mainstream economy is performing very well, output growth is not quite at the stratospheric levels that surveys suggest,” said UBS economist Paul Donovan.

“The flow of information about the vaccination cycle may be more important in dictating the responses to mood surveys than actual economic activity.”

The busy week for US economic data is expected to show tremendous strength, especially for the ISM production survey and payroll in April. Estimates are that 978,000 jobs have been created during the month as consumers have spent their money on incentives and the economy has opened up more.

Analysts at NatWest Markets, for example, see that wages in the United States rose by 1.25 million in April, and unemployment fell to 5.2% from 6% in March.

Such gains could spark speculation to reduce asset purchases by the Federal Reserve, although President Jerome Powell has shown all signs of remaining patient in politics.

Powell is scheduled to speak later Monday, and will be followed by a number of Fed employees this week. Dallas Fed President Robert Kaplan sparked a stir on Friday, calling for talks to begin on a reduction.

Powell’s patience helped ease the pressure on government securities sales, but the 10-year yield still ended last week with a rise of 6 basis points. They were last 1.626%, falling slightly during the day.

The increase offers some support for the US dollar, which is being squeezed by the rapid expansion of the US budget and trade deficits, a by-product of the economy’s economic efficiency.

The value was 91,218 and fell from a two-month low of 90,422, although it still ended in April with a loss of 2%.

The euro rose 0.2% to $ 1.2040 after falling from a nine-week high of $ 1.22149 on Friday.

The cryptocurrency ether set a new record of more than $ 3,000 as investors bet it would be increasingly useful in a decentralized future financial system. Its lightning rally – now up 325% in 2021 – has overshadowed that of its bigger competitor, bitcoin.

Oil prices turned a profit after ending last month with gains of 6% to 8%. [O/R]

it last fell 9 cents to $ 66.67 a barrel while losing 6 cents to $ 63.52 a barrel.

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