Wall Street rebound shores up markets at start of busy week
By The Associated Press (AP)
LONDON (AP) — Global stocks rose sharply Monday at the start of a potentially big week for markets as they tracked an end-of-week rebound on Wall Street. A promise by China's leaders to shore up growth and hopes of progress in Greece's bailout talks with creditors also helped stocks rally.
KEEPING SCORE: In Europe, France's CAC-40 rose 1.1 percent to 5,103 and Germany's DAX added 1.4 percent to 11,611. British markets were closed for a public holiday. Monday's gains in Europe followed Friday's strong performance on Wall Street when the Dow rose 1 percent at the S&P gained 1.1 percent. U.S. stocks were poised for further gains at the bell with Dow futures and S&P 500 futures up 0.2 percent.
BUSY WEEK AHEAD: Though the economic news flow on Monday is light, there's a raft of economic indicators this week that could move markets, culminating in Friday's U.S. nonfarm payrolls figures for April. The data often set the market tone for a week or two after their release.
ANALYST TAKE: Sue Trinh, an analyst at RBC Capital Markets, said Friday's payrolls figures are "the most important" in some time given the recent slowdown in U.S. economic growth and mounting uncertainty over when the Federal Reserve will start raising interest rates again.
GREECE PROGRESS: Officials said Greece made progress with its creditors over the weekend on how to stave off bankruptcy despite complaints in Athens that the International Monetary Fund is pushing the cash-strapped country too hard over labor reforms. Greece has to come up with a series of economic reforms and budget measures that are deemed acceptable by creditors in order to secure the remaining money in its bailout fund — 7.2 billion euros ($7.7 billion). Without the money, Greece faces the possibility of going bankrupt in the coming weeks and an exit from the euro.
CHINA SLOWDOWN: The Communist Party's Politburo met last week and promised "forceful" measures to support economic growth that slumped to 7 percent in the first quarter, its lowest level since the aftermath of the 2008 financial crisis. The party leadership called for boosting investment and streamlining the flow of money through the financial system. That came as surveys by HSBC Corp. and a Chinese industry group found April manufacturing activity was at or close to a 12-month low, hurt by weak domestic demand.
ASIA'S DAY: The Shanghai Composite Index gained 0.9 percent to 4,480.46 and Seoul's Kospi rose 0.2 percent to 2,132.23. Hong Kong's Hang Seng was little changed at 28,123.82. Sydney's S&P/ASX 200 advanced 0.2 percent to 5,827.50.
ENERGY: Benchmark U.S. crude gained 36 cents to $59.51 in electronic trading on the New York Mercantile Exchange.
CURRENCIES: The euro gave up some of its recent gains, falling 0.6 percent to $1.1137. Meanwhile the dollar advanced 0.1 percent to 120.24 yen.