Global Stocks Higher After Wall St Gain Ahead of Fed Meeting
BEIJING (AP) -- Global stock markets rose Monday as investors looked ahead to this week's Federal Reserve meeting for hints of possible changes in ultra-low interest rates and other economic stimulus.
London and Frankfurt opened higher while Tokyo also gained. Markets in China and Hong Kong were closed for a holiday.
Trading has been muted as investors wait for Wednesday's Fed meeting for signs of whether U.S. central bankers are turning more hawkish following a rise in inflation. No policy changes are expected immediately, but any shift in language in Fed comments might fuel fears bond purchases and other stimulus will wind down.
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
"Expectations are for the Fed to maintain its ultra-dovish policy stance and refrain from discussing any form of tapering just yet," said Mizuho Bank in a report.
In early trading, London's FTSE 100 rose 0.3% to 7,156.76 and the DAX in Frankfurt added 0.5% to 15,775.29. The CAC 40 in Paris gained 0.6% to 6,640.68.
On Wall Street, futures for the benchmark S&P 500 index and the Dow Jones Industrial Average were up 0.1%.
On Friday, the S&P 500 turned in a third weekly gain after rising 0.2%. The Dow Jones Industrial Average added less than 0.1% while the Nasdaq gained 0.4%.
In Asia, the Nikkei 225 in Tokyo gained 0.7% to 29,161.80 while the Kospi in Seoul added less than 0.1% to 3,248.36.
India's Sensex lost 0.3% to 52,306.12. New Zealand and Bangkok gained while Singapore and Jakarta retreated.
Fed officials say higher inflation should be short-lived. That was supported by a report last week that showed a rise in consumer prices in May was due mostly to temporary factors.
In energy markets, U.S. benchmark crude rose 51 cents to $71.42 per barrel in electronic trading on the New York Mercantile Exchange. The contract gained 62 cents on Friday to $70.91. Brent crude, the price basis for international oils, advanced 62 cents to $73.31 per barrel in London. It added 17 cents per barrel the previous session to $72.69.
The dollar declined to 109.69 yen from Friday's 109.72. The euro advanced to $1.2111 from $1.2104.