Global stocks rise to fresh highs, the dollar recovers, numerous countries release PMI data, and oil hovers near April lows amid oversupply concerns. Here are four things you need to know in Monday’s market.
1. Global Stocks Rise to 11-Month High
Global stock markets were trading at 11-month highs early Monday. Markets were boosted by speculation that major central banks will expand stimulus or hold off on reducing it in the coming months.
Wall Street was poised to open higher after weak growth data on Friday minimized the threat of the Federal Reserve raising interest rates in the near future.
Stock markets in Europe were higher in morning trade. Investors digested the latest results from the European Banking Authority stress test.
Asian shares touched a one-year high earlier in the day, as weak U.S. growth data diminished chances of a rate hike in August or September.
2. The Dollar Rises from 5-Week Low
The greenback climbed on Monday, rising from a five-week low reached on Friday. The dollar index was 0.15% higher at 95.67 in morning trade. On Friday, the index touched a low of 95.34, its lowest level since June 24.
3. Numerous Countries Release PMI Data
Manufacturing activity in the euro region slowed in July due to uncertainty caused by Brexit. Markit PMI fell to 52 in July from 52.8. Manufacturing also contracted in the U.K., falling to its lowest level in three years after the Brexit vote. Markit’s PMI tumbled to 48.2, lower than the 49.1 reading last month and below the 50 mark that signals contraction.
In China, mixed PMI data confused investors. The official factory gauge showed manufacturing activity slipping, while Markit’s and Caixin Media’s figures showed activity spiking to its highest level in more than 12 months.
4. Oil Prices Hover Near April’s Low
Oil prices tumbled down to a three-month low. Increased production in the U.S. and higher output from OPEC members put pressure on the commodity.
WTI crude was down 1.32%, or 55 cents, to $41.05 per barrel. Brent lost 1.42%, or 66 cents, to trade at $42.91 a barrel.
