Global stocks rise as investor focus pivots to Fed
Source: AP
KELVIN CHAN
HONG KONG (AP) — European and Asian stocks extended gains Monday on expectations that central bankers meeting this week will keep intact policies supporting equity markets in some of the world's biggest economies.
KEEPING SCORE: In Europe, Germany's DAX rose 1.5 percent to 9,980.29 and France's CAC 40 added 0.6 percent to 4,517.68. Britain's FTSE 100 rose 0.5 percent to 6,169.54. U.S. stocks were poised to open lower, taking a breather after ending last week with a rally. Dow futures slipped 0.1 percent while the broader S&P 500 futures lost 0.2 percent.
CENTRAL BANKS: Investors are awaiting more central bank meetings after the European Central Bank followed through last week on its promise to provide more stimulus. The Fed wraps up a two-day meeting on Wednesday and while investors think there's little chance of a rate hike, they'll be watching to see whether policymakers are leaning toward such a move at their next major meeting in June. The Bank of Japan and the Bank of England are also due to meet this week though analysts don't expect any major policy changes. Australia's central bank is set to release meeting minutes on Tuesday, which will provide further insight.
ANALYST VIEWPOINT: "In recent weeks we have seen some encouraging data for the U.S. economy that are likely to have bolstered the Fed's confidence," said Jane Foley, strategist at Rabobank. "At the same time, not all the doves are convinced and they would like to see more evidence of inflation moving back toward the 2 percent target. This suggests that we should not expect a Fed rate hike this week, but we may see a consensus forming by the June meeting."
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A woman walks by an electronic stock board of a securities firm in Tokyo, Monday, March 14, 2016. Asian stock markets rose Monday, extending a global rally after Wall Street finished strongly as investors turned their attention to several key upcoming central bank meetings. (AP Photo/Koji Sasahara)
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