The stocks market in Europe started Monday trading higher as investors awaits speeches from the European Central Bank (ECB) President Mario Draghi and other bank officials. The markets are also focusing on Ukraine and the European Parliament election results over the weekend.
The European Euro Stoxx 50 climbed 0.38% higher, opening at 3,215.51, while the German DAX gained 0.63% to 9,829.05 at the time of writing. At the same time the French CAC 40 rose 0.18% higher, starting the session at 4,501.18, while markets in the UK were closed for a public holiday.
The anti-establishment parties hit the hardest in the UK, Greece, Denmark and France, the early results revealed on Monday. The center-right European People’s Party is predicted to gain 212 seats in the new parliament, down from 274 seats previously.
Petro Poroshenko, a confectionery tycoon billionaire claimed victory over the weekend as he won the Ukrainian presidential election, leading votes by 56%, exit polls confirmed. Winning the first round of the presidential election.
The European Central Bank President Mario Draghi is expected to give a speech at the ECB Forum on Central Banking later in the day. Other bank officials are also expected to speak as the market focus on the speech for further hints on what the bank intends to do at its next meeting scheduled for June 5.
Free Reports:
“Reductions in interest rates and the introduction of negative deposit rates rate on the cards rather than outright QE. However, the ECB is in a liquidity trap and a 15bp cut in the refi rate is unlikely to do much. Negative deposit rates will just squeeze euro volumes in the money markets and euro zone banks might just pass on the lost interest income to their customers thereby inadvertently squeezing the real economy,” Neil MacKinnon from VTB Capital wrote in a note.
Stocks in Asia rose on Monday, rising for a third day and rising to its highest in six months after an increase in US home purchases.
The Japanese benchmark Nikkei 225 index climbed 0.78% higher to 14,572.74 points at the time of writing, while Tokyo’s Topix index rallied 0.94% to 1,91.48 points.
Hong Kong’s Hang Seng index rose 0.32% to 23,038.73 points, while the mainland Chinese Shanghai Composite gained 0.25% to 2,039.66 points.
The South Korean Kospi index lost 0.26% to 2,011.90 points, while in Australia, the benchmark S&P/ASX 200 index gained 0.26% to 5,507.20 points, with stocks in the financial and mining sector leading gains.
Sales of new homes in the US climbed by 6.4% to 433,000 units in April on an annual rate, data from the Commerce department showed, while sales for existing homes tracked by the National Association of Realtors (NAR) advanced by 1.3% from the previous month to an annual rate of 4.65 million units in April.
“The tone of the April new home sales report was quite encouraging, and it adds to the better tone seen in a variety of other housing-related indicators such as starts and existing home sales that are collectively pointing to a rebound in US housing market activity, after the recovery essentially stalled during the prior 9 months,” deputy head of US Research and Strategy at TD Securities Millan Mulraine wrote in a note.
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