Global shares rose on Monday, aided by data showing profits at Chinese industrial firms grew for the first time in four months and a strong reading of US first quarter growth data last week. The MSCI All-Country World Index of shares, which tracks stocks in 47 countries, was up 0.06 percent after the start of European trading. Most major European stock markets traded firmer, with the pan-European STOXX 600 index up 0.1 percent.
Spain’s IBEX 35 index underperformed peers, however, down over half a percent after Prime Minister Pedro Sanchez overcame a challenge from right-wing nationalists in elections on Sunday. The elections had little immediate impact on the country’s bond market. Shares in Italian banks got a boost and Italian government bonds rallied after S&P Global affirmed Italy’s sovereign credit rating.
Still nagged by uncertainty over the outlook for the global economy, investors were looking to a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world’s biggest economies. For stock traders, it seems that the important catalysts are pointing higher: the US sees strong domestic growth, low inflation keeps the Fed at bay and could potentially trigger a rate cut so it seems that equities have nowhere to go but higher – at least in the short term, said Konstantinos Anthis, head of research at ADSS. — Agencies