Global markets up on Monday -busy week ahead

The stock markets ended up on the Monday trading in Asia, Europe and Wall Street. According to the markets, one of the biggest reasons for the positive trend was the agreed US China tradewar situation with the new 90 days negotiations timetable.

Dow Jones -index was up 1,13 % to 25 826, S&P 500 index was up 1,09 % to 2790 points and Nasdaq 1,51 % to 7441 points.  In Paris CAC 40-index increased 1 % 5053 points and in Frankufrt the Dax-index ended up 1,85 % to 11 465 points. In London the FTSE all shares index was up 1,04 % to 3863 points.

In Asia the Shanghai index was up 2,57 % to 2654 points and HangSeng in Hong Kong + 2,55 % to 27 182 points.

There are major happenings during this week. For example in London, the Parliament is having debate about the Brexit deal before the vote on next Monday the 11th. On Wednesday there will be the US national day of late President George H. W Bush.

Federal Reserve´s  Vice Chairman Richard Clarida said in the Bloomberg interview on Monday that the US economy is in good shape and that the outlook is solid.

Finance Business

China to cut interest rates – Fed to act next year – EU to focus avoiding turbulence

The Bank of China has cut its benchmark lending rate to record low and also lowered the reserve-requirement ratios for lenders. The decision came after sell-offs  of Chinese stocks during the couple of weeks. The reason is also to add cash and support the economy which has showed signs of poorer growth  performance. The one-year rate was reduced by 25 basis points to 4,85 per cent. Many economists expect the Chinese GDP annual growth to decrease under 7 percent during the second-quarter.

The Financial Markets ended lower on Friday in New York and in London. On the other hand the German DAX-indeksi was slightly up, with a year return of over 17 percent.  The Shanghai Shenzhen CSI 300 -index has gained over 100 percent this year.

There has been growing speculation also when the US Federal Reserve will act regarding the bond buying and rate hikes. According to Goldman Sachs analysts they predict that the Fed will rise the rates late next year. The estimate was published last week.

In Greece, the decision to make a referendum on spending cuts on July 5th 2015 has caused concerns among EU-finance ministers. According to media sources, EU is now focusing more how to avoid financial turbulence during next week.

The European Central Bank has increased Emergency Liquidity Assistance weekly to Greek central bank to funnel the lenders.

Business Finance