European stock markets gained, with banks rallying and bond yields in Italy and Spain easing further after a member of the European Central Bank’s sparked speculation about a restart of the bank’s bond-buying program.
In the US the Dow Jones industrial average rose 89.46 points, to 12 805.39 at the close. The Standard & Poor’s 500 Index gained 10.12 points, to 1 368.71. The Nasdaq Composite Index advanced 25.24 points, to 3 016.46.
The Stoxx Europe 600 index closed 0.7% higher at 254.43. The French CAC 40 index gained 0.6% to 3,237.69, in Germany, banks helped lift the DAX 30 1% to 6,674.73.and the FTSE 100 index closed 0.7% higher at 5 634.74.
Most Asian markets notched slim gains this morning, with resource stocks driving gains in Australia, but South Korean shares tumbled as trading resumed after a break.
Australia’s S&P/ASX 200 index rose 0.5% and China’s Shanghai Composite gained 0.4%, while Hong Kong’s Hang Seng Index and Japan’s Nikkei Stock Average each added 0.2%. South Korea’s Kospi lost 1%.
The US dollar is currently trading at 1.31 to the euro, 1.59 to the pound and will buy 81.01 Japanese Yen or 7.95 South African Rand.
The JSE ended weaker yesterday, tracking negative global investor sentiment, following the disappointing US jobs monthly report.
At the close, the JSE all-share index was flat (0.04%) at 33 632.76 points but resources recovered 0.70%, while platinum miners inched up 0.12%, and gold miners gathered 2.38%. Banks, however, shed 0.48%, financials were flat (0.02%) and industrials lost 0.40%.
South African bonds ended higher yesterday. At the close, the R157 bond was at trading 6.760% from its previous close of 6.780%. The R207 was trading at 7.870% from a previous close of 7.890% and the R186 was trading at 8.480% from its close of 8.515%.
Brent crude traded lower pressured by rising U.S. inventories as well as concern about the strength of global demand.
Spot gold is currently trading at US$ 1658.63/oz and platinum at US$ 1594.00/oz. Brent crude oil is currently trading at US$ 120.47 per barrel.