BEIJING, China – Global stock markets were boosted Tuesday by Greece’s declaration of progress in bailout talks and a new high on Wall Street as investors looked ahead to U.S. and European inflation data.
KEEPING SCORE: In early trading, Germany’s DAX added 2 per cent to 11,823.19 and France’s CAC 40 jumped 2 per cent to 5,113.86. Britain’s FTSE 100 gained 0.5 per cent to 7,003.94. Futures for the Dow Jones industrial average and the Standard & Poor’s 500 were both up 0.3 per cent.
DATA POINTS: The eurozone is due to report April inflation on Tuesday, with the consensus forecast calling for no change in consumer prices. Upward pressure on prices could be a sign of strengthening economic growth and demand. U.S. data due out Friday are expected to show prices contracted by 0.2 per cent, adding to last month’s 0.1 per cent fall. Japan reports quarterly economic growth on Wednesday that might show its recovery picking up pace.
THE QUOTE: “At a time when most central banks are fighting the gravity of deflation, the slew of CPI numbers due this week may offer further clues as to which of the two key central banks have managed to engineer a quicker turn around in their economy,” said Nicholas Teo of CMC Markets in a report. “Those of the U.S. on Friday could set the tone for most capital markets in the days ahead.”
GREEK DEVELOPMENTS: Greek Finance Minister Yanis Varoufakis said Monday that he expects an agreement with bailout creditors within the next week, which would save the cash-strapped country from fast-approaching bankruptcy. For almost four months, Greece’s radical left-led government has been haggling with its creditors from the 19-country eurozone and International Monetary Fund over economic reforms it must make to secure a 7.2 billion euro ($8 billion) cash injection.
ASIA’S DAY: The Shanghai Composite Index rose 3.1 per cent to 4,417.55 and Tokyo’s Nikkei 225 rose 0.7 per cent to 20,026.38. Hong Kong’s Hang Seng added 0.4 per cent to 27,693.54 and Seoul’s Kospi advanced 0.3 per cent to 2,120.85. India’s Sensex rose 0.6 per cent to 27,841.69. Sydney’s S&P/ASX 200 shed 0.8 per cent to 5,615.50. Southeast Asian markets were mixed.
ENERGY: Benchmark U.S. crude fell for third day, losing 42 cents to $59.01 in electronic trading on the New York Mercantile Exchange. The contract lost 26 cents on Monday, declining for a third day to close at $59.43. Brent crude, used to price international oils, also declined for a third day, losing 74 cents to $65.54 after shedding 54 cents on Monday to $66.27.
CURRENCIES: The dollar rose to 120.03 yen from Monday’s 119.96 yen. The euro declined to $1.1190 from $1.1320.