US stocks post back to back gains

By IFCMarkets

Dow gains more than 400 points

US stocks advanced on Monday as investors brave enough to buy the dip continued their hunt for bargains. The S&P 500 climbed 1.4% settling at 2656. The Dow Jones industrial average advanced 1.7% to 24601.27. The Nasdaqcomposite index rose 1.6% to 6981.96. The dollar weakened, the sentiment persisting today: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, fell 0.3% to 90.426. Index futures indicate lower openings today.

There is no market consensus yet whether last week’s sell-off was a temporary pullback or the start of a bearish trend triggered by Fed monetary tightening concerns. The US inflation report Wednesday is an important data point, rising consumer prices will intensify bearish sentiment. Investors also ponder the stimulus that the infrastructure spending plan unveiled by Trump administration to spend $200 billion over 10 years on highways, airports and bridges may deliver to the US economy.

European markets rebound tracking Wall Street

European stock indices rebounded on Monday recovering part of last week losses. Both the euro and British Poundresumed their climb against the dollar. The Stoxx Europe 600 index rose 1.2%. The DAX 30 jumped 1.5% to 12282.77. France’s CAC 40 gained 1.2% and UK’s FTSE 100 added 1.2% to 7177.06. Markets opened mixed today.


Asian stocks advance persists

Asian stock indices are mostly higher today. Nikkei lost 0.8% to 21222.00 as yen strengthening against the dollar accelerated. Chinese stocks are rising: the Shanghai Composite Index is 0.9% higher and Hong Kong’s Hang Seng Index is up 1.4%. Australia’s All Ordinaries Index is 0.6% higher with Australian dollar steady against the US dollar.

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Brent futures prices are rising today on expectations of rising demand. OPEC estimates strengthening global demand will continue to absorb excess supplies, according to a monthly report released Monday. Prices fell Monday as the US Energy Information Administration report suggested US shale oil output would rise 110 thousand barrels a day in March. April Brent crude settled 0.3% lower at $62.59 a barrel on Monday.

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