Asian and European markets rose on tailwinds from US economic news. Yesterday’s session was characterized by positive ADP payroll data and narrower trade balance which, highlighted the resilience of the American recovery; hence improving sentiment across the globe. Today, Brent futures saw modest stability above the $50 level and the Euro extended its losing streak to ten consecutive days, dipping below $1.18.
Today’s trading session might be affected by the weekly jobless claims data, moreover volume may be somewhat subdued ahead of the monthly jobs report on Friday.
Gold prices continued to decline as stocks around the world rebounded. US equities rose after the minutes of the Fed’s meeting in December confirmed that an interest rate hike was not imminent. Japanese stocks also posted a gain of 1.7% following the increase in US stocks.
However Chinese stocks fell the most in two weeks, with the Shanghai Composite Index declining 2.4% after four days of growth, indicating the persistence of volatility. The economic planning agency in China denied the expansion of fiscal spending to stimulate growth, following the President’s statement that the Chinese has “entered a new normal”, with the expectation of “medium to high growth”.