ALBAWABA – Stocks worldwide rallied on Monday on hopes that central banks around the world will pin interest rates for the coming months after the United States (US) Federal Reserve (Fed) held the benchmark rate at its current 5-5.25 percent levels, as gold prices fell.
Traders and investors are turning away from safe havens as risk appetite builds on the equities rally ignited by optimism that monetary tightening cycles are at their peak and that the Fed and other authorities will start loosening up policy measures soon.
As a result, gold prices slipped $5.34 on the ounce on Monday, down 0.27 percent to $1,987.55, having breached the $2,000 threshold just last week.
Markets are pricing in earlier-than-expected interest rate cuts, according to Reuters, in light of slowing inflation across the Eurozone and the US.
Tokyo stocks closed higher after Wall Street rallied on slower jobs and wage growth data that reduced expectations of further US interest rate hikes, according to Agence France-Presse (AFP).
The benchmark Nikkei 225 index was up 2.37 percent, or 758.59 points, to end at 32,708.48, while the broader Topix index added 1.64 percent, or 38.07 points, to 2,360.46, as reported by AFP.
Rising old prices indicate a risk-off sentiment that usually weighs on stocks worldwide - Shutterstock
Stocks worldwide got off to a strong start this week, with Asia and US markets on the rise and all major Asian equity indices well into the green, Reuters reported.
Likewise, South Korea’s Kospi index surged by 4.4 percent, helped by the re-imposition of a short-selling ban, both AFP and Reuters confirmed.
Meanwhile, MSCI’s benchmark Asian equity index climbed for a fourth day.
The index is heading for its highest close since September, according to Bloomberg, with Japan’s Topix, Hong Kong’s Hang Seng and the Shanghai Composite up 1.6 percent, 1.5 percent and 0.8 percent, respectively.
On the other hand, US equity futures and Treasuries have steadied after last week's big gains, with markets bracing to see if yields can extend their bull rally or if sellers will re-emerge once more.
Stocks worldwide: Markets summary by AFP and Bloomberg:
S&P 500 futures were little changed as of 3:09 p.m. Tokyo time.
The S&P 500 rose 0.9 percent Friday
Nasdaq 100 futures were little changed.
The Nasdaq 100 rose 1.2 percent
Australia’s S&P/ASX 200 rose 0.3 percent
Japan’s Topix rose 1.6 percent
Hong Kong’s Hang Seng rose 1.5 percent
The Shanghai Composite rose 0.8 percent
Euro Stoxx 50 futures were little changed
Tokyo - Nikkei 225: UP 2.4 percent at 32,708.48 (close)
Hong Kong - Hang Seng Index: UP 1.7 percent at 17,966.59 (close)
Shanghai - Composite: UP 0.9 percent at 3,058.41 (close)
London - FTSE 100: UP 0.1 percent at 7,423.42
New York - Dow: UP 0.7 percent at 34,061.32 (close)
