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SYDNEY – Asian stock markets rallied globally on Monday, as investors dared to expect both US-China trade talks in Washington this week and stronger stimulus from central bankers.
The MSCI's widest share of Asia-Pacific shares outside Japan rose 1% after a sharp drop last Friday.
Japan 's Nikkei climbed 1.8% to its highest level of the year so far, while the leading Australian index rose 0.7%.
Shanghai blue chips rebounded 1.6%.
But the E-Mini futures for the S & P 500 remained unchanged, the trade having been negated by vacations in the US markets.
The Dow Jones and Nasdaq have touted their eighth consecutive consecutive wins over the US and China bets on an agreement ending their long-running trade war.
Both parties will resume negotiations this week. US President Donald Trump said he could extend the March 1 deadline for an agreement. Both reported progress after five days of negotiations in Beijing last week.
"This does not rule out one or two setbacks by the beginning of March," said ABC badysts in a note.
"Even in this case, we still think that both parties have good reason to want to reach an agreement, and, so motivated, it makes an agreement more likely than otherwise."
More and more of the world's most powerful central banks are expecting more and more reflationary policies.
The need for an economic stimulus was highlighted Monday by data showing a sharp decline in Singapore's exports and a sharp drop in foreign orders for Japanese equipment goods.
Beijing has already taken steps to ensure that Chinese banks obtain the largest number of new loans ever in January, with the aim of reviving lazy investments.
The minutes of the Federal Reserve's latest monetary policy meeting are due to be released Wednesday and is expected to provide further guidance on whether or not a rate hike this year. There is also talk of the bank maintaining a much larger balance sheet than expected.
"Given the number of speakers who support" patience "since the January meeting, the Fed's minutes should reiterate a broadly conciliatory message," said TD Securities badysts in a note.
A call from Fed officials speaks at various events this week, including a roundtable Friday on the future of its balance sheet.
EYES OF THE ECB
Olli Rehn, of the European Central Bank, told a German newspaper Sunday that recent data indicated a weakening of the euro area economy and that interest rates would remain at the current level until the end of the year. the objectives of monetary policy are achieved.
This came amidst many rumors that the ECB would launch another round of targeted long-term refinancing operations (TLTROs) to support bank lending.
The risk of an easy ECB saw the euro hit a three-month low on Friday before bouncing back on dovish comments from Fed officials.
The single currency increased slightly to US $ 1,309, but was still in the trading range of US $ 1,1213 to US $ 1,1570 since mid-October. The dollar remained stable on the yen at 110.53, after having pulled out of a peak of 111.12 in two months.
Sterling is shown firmer at $ 1,2909 before Brexit talks between British Prime Minister Theresa May and European Commission President Jean-Claude Juncker this week.
All this left the dollar at 96.811 on a basket of currencies, approaching the peak of 97.368 last week.
In commodity markets, spot gold rebounded 0.28% to US $ 1,324.70 per ounce.
Oil prices reached their highest level since the beginning of the year, thanks to OPEC supply cuts and United States sanctions on Iran and Venezuela.
US crude rose 36 cents to 55.95 dollars a barrel, while Brent crude rose 20 cents to 66.45 dollars.
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