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China’s Rising Trade Data Lifts Global Stocks

Posted: Apr 15, 2016 at 3:00 am   /   by   /   comments (0)

Global stocks rose yesterday after surprisingly upbeat Chinese trade
data offered hope Asia’s biggest economy is finally stabilising,
fuelling risk appetite.
China reported exports jumped 11.5 per cent year on year in March — the
first increase since June, well above market forecasts, and a huge
improvement on February.

Europe’s main indices rose as much as two per cent in early trade,
Asian stocks extended their winning streak to the longest in six
months, and U.S. futures pointed to a positive open on Wall Street.

“Equities rallied across the board” on the data, said RBC Capital
Markets strategists in a note to clients on Thursday.

“Given the latest rebound in equity markets and the dollar, markets are likely to trade with a more risk-on mode over the next couple of days.”

Europe’s FTSEuroFirst index of leading 300 shares was up 1.4 percent
at a two-week high of 1,334 points .FTEU3, Germany’s DAX and France’s
CAC 40 were both up 1.8 per cent .GDAXI .FCHI, and Britain’s FTSE 100
.FTSE up 1.1 per cent.

Earlier in Asia Chinese stocks .SSEC added 1.4 per cent, while Japan’s
Nikkei .N225 rose 2.8 per cent for its biggest daily gain in six weeks.
MSCI’s broadest index of Asia-Pacific shares outside Japan
,MIAPJ0000PUS added 1.5 percent, chalking up its sixth straight gain
and coming within a whisker of breaching its high point for the year
so far.
Brent crude LCOc1 was down 1.8 per cent at $43.91 a barrel, after
rising 4 per cent on Tuesday and breaching the 200-day moving average
around $43.50 — the first time it has scaled this key technical level
in almost two years.

U.S. crude CLc1 lost 2 percent to $41.34, easing back from a
four-month high, but also held above the 200-day moving average around
$40.95 as attention turns to this weekend’s meeting of top oil
producers in Doha.
Saudi oil minister Ali al-Naimi ruled out an output cut, in comments
to Saudi-owned al-Hayat newspaper published on Wednesday.

A rally in energy stocks helped Wall Street end Tuesday firmer across
the board .DJI .SPX .IXIC. The S&P 500 energy sector .SPNY jumped 2.8
percent and the Dow industrials posted its best day in about a month.
The focus for equity markets on Wednesday will likely be JP Morgan’s
first quarter results (JPM.N), the first of the world’s big investment
banks to report.

The first three months of the year were highly volatile across
financial markets, and are expected to have torpedoed banks’ trading
revenues and profits.
The lift in energy overnight boosted oil- and commodity-sensitive
currencies including the Canadian and Australian dollars to
multi-month peaks, but that rally fizzled out as oil headed lower

Both currencies were down around a third of a percent against the U.S.
dollar CAD= AUD=, which was in turn up a third of a percent at 108.90
yen JPY=, having climbed from a near 18-month trough around 107.63 set
on Monday.