News Column

Global stocks edge higher

February 7, 2014



! LONDON, Rabi'II 6, 1435, Feb 6, 2014, SPA -- World stocks edged up from this week's four-month lows in cautious trade ahead of a euro zone monetary policy decision later on Thursday, supported by relative calm in vulnerable emerging markets, Reuters reported.

The euro was steady to weaker as some investors bet that the European Central Bank could surprise markets with another interest rate cut to ward off the threat of deflation after last month's unexpectedly soft inflation reading.

The broad consensus is that there will be no change in the bank's record low benchmark rate of 0.25 percent .

The MSCI world equity index rose 0.2 percent, while European stocks followed Asia higher by gaining half a percent.

Relative calm in the capital-hungry emerging markets of Turkey, South Africa and India also lifted developing stocks, after a rout that drove safe-haven bids to U.S. Treasuries and the yen.

Emerging stocks rebounded 0.6 percent from this week's five-month lows while the Turkish lira and South African rand held above recent lows.

The banking sector will be in the spotlight after Credit Suisse missed expectations with a marginal uptick in fourth-quarter net profit, and its shares were down more than 2 percent.

The euro was down slightly on the day at $1.3522 and 137.14 yen. The dollar rose 0.1 percent against a basket of major currencies. German bond futures were broadly steady.

The benchmark 10-year Treasury yield was steady at 2.6675 percent after weak U.S. manufacturing data earlier in the week pushed it to a three-month low.

U.S. crude oil rose 0.2 percent to $97.59 a barrel.

--SPA 13:44 LOCAL TIME 10:44 GMT

All Rights Reversed for Saudi Press Agency Provided by Syndigate.info, an Albawaba.com company


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Saudi Press Agency (Saudi Arabia)


Story Tools