Global Market Reviews

European stocks climbed higher Monday, with optimism regarding the global economic outlook continuing to prompt investors into pushing more cash into the equity asset class.

By 0805 GMT, the Dow Jones pan-European Stoxx 600 index was up 0.6% at 220.9. London’s FTSE 100 index was 0.2% higher at 4587.65, Frankfurt’s DAX index pushed up 0.8% to 5269.14 and the CAC-40 index in Paris up 0.7% at 3388.33.

This session’s rally follows several days of straight gains, with London’s
FTSE heading for its eleventh day of consecutive gains, its longest winning
streak for four years.

ING described the current optimism as “infectious” with analysts moving
recommendations in a positive direction and upgrading earnings forecasts. “This should underpin recent gains and is likely to add further fuel to the rally,” the brokerage said.

It noted that in March, earnings momentum was negative in all sectors, except health. Now half of all sectors are seeing upgrades, led by resources,
financials and technology.

USD/TWD ends sharply down sharply at 32.820 vs 32.955 last close in moderate trade on foreign fund inflows, weak USD/KRW, gains in Taiwan shares (Taiex +0.8%), exporters’ month-end selling, says local bank trader. “There were some fund inflows as foreign investors foresee possible future gains in Taiwan shares, but the volume was not heavy as investors are still waiting for second-quarter earnings reports (to be released this week),” she says. Eyes USD/TWD in 32.700-32.850 band tomorrow.

The cost of borrowing longer-term U.S. dollars in the London interbank market fell Friday as term funding pressures eased marginally.

Data from the British Bankers’ Association showed three-month dollar Libor,
seen as a key gauge of the effectiveness of the Federal Reserve’s monetary
policy, moved down to 0.50188% from Thursday’s 0.50375%, matching Wednesday’s record low.

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