In US economic data, the leading indicator fell 1.0% in December (survey: -0.7%).
European share markets rose on Monday with technology stocks driving gains, up 2.3%. Analysts attribute gains to optimism that Europe can avoid a deep recession. Also Reuters noted that hopes for a re-opening of the Chinese economy drove Chinaexposed luxury firms such as LVMH and Kering up by between 0.8% and 1.7% while rate-sensitive euro zone banks added 0.8%. The continent-wide FTSEurofirst 300 index gained 0.5%. The UK FTSE 100 index rose by 0.2%.
US share markets rose on Monday with technology stocks – especially chipmakers – driving gains. Shares in Qualcom rose 6.6% with American Micro Devices up 9.2% on a broker upgrade. Baker Hughes fell 1.5% after missing earnings estimates. Shares in Spotify rose 2.1% after announcing a 6% cut of its global workforce. Shares in Tesla rose by 7.7% with Apple up 2.4%. The Dow Jones index finished trade higher by 254 points or 0.8% after earlier being up 407 points. The S&P 500 index lifted by 1.2%. And the Nasdaq index gained 224 points or 2.0%.
US government bonds fell on Monday (yields higher). Analysts attribute the higher yields recorded over Friday and Monday to hopes of a soft landing for the US economy. Investors are also watching political haggling over the debt ceiling. US 10-year Treasury yields rose by 4 points to 3.52%. US 2-year yields lifted by 5 points to 4.24%.
Major currencies were mixed against the US dollar in European and US trade. The Euro fell from near US$1.0920 to
US$$1.0845 and was near US$1.0865 in late US trade. The Aussie dollar lifted from near US69.60 cents to near US70.40 cents and was around US70.25 cents at the US close. And the Japanese yen eased from 129.55 yen per US dollar to JPY130.85 and was near JPY130.70 at the US close.
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Global oil prices ended mixed on Monday. Supporting prices was the re-opening of China with Reuters noting “a stronger outlook thanks to an expected economic recovery in top oil importer China this year.” Data shows a pick-up in travel in China travel with road traffic congestion in the country’s 15 key cities so far this month up 22% from a year ago. The Brent crude oil price rose by US56c or 0.6% to US$88.19 a barrel. But the US Nymex crude oil price fell by US2 cents to US$81.92 a barrel.
Base metal price futures prices were firmer on Monday. The US aluminium futures price rose by 1.6%. And the US copper futures price lifted 0.1%.
The gold futures price rose by US40 cents to US$1,928.60 an ounce. Spot gold was trading near US$1,931 an ounce at the US close. Iron ore futures fell by US22 cents a tonne or 0.2% to US$121.94 a tonne.
Ahead:
The NAB business survey is released with the Judo Bank ‘flash” purchasing managers survey and weekly consumer
confidence.
Chinese financial markets are closed for the week long Lunar New Year holiday.
In the US, the ‘flash’ S&P Global purchasing managers survey is released with the Richmond Federal Reserve manufacturing index.
Originnally published by CommSec
