Market Buzz: Cheered by resumed trade in US and UK

Waiting for the macroeconomic news to follow later on Wednesday from the West, Russian floors have opened neutrally, slightly up.

Tuesday ended with the Russian
stock market on positive ground, thanks to growing oil prices and
optimistic exterior outlook. The MICEX ended the session 1.4
percent higher at 1398, while the RTS advanced 1 percent to close
at 1399.

European floors posted strong gains on May 28, as the UK and the
US stocks reopened after the long holiday weekend.  

The benchmark Stoxx 600 index advanced 1.3 percent to 308.23.
London’s FTSE 100 index closed 1.62 percent higher at 6,762.01
points, while the DAX 30 index in Frankfurt added 1.16 percent to
8,480.87 points. In Paris, the CAC 40 climbed 1.39 percent to end
the session at 4,050.56.

Italy’s stock exchange in Milan ended up 2.10 percent at 17,520
points, while the Spanish IBEX 35 added 1.77 percent to end at
8,511.3.

US stocks are back on track with the upward tendency, which has
prevailed on the US floors this year bringing record highs to
major indicators. Market was cheered by the US home prices, which
rose the most in seven years, while consumer confidence reached a
five-year high. As stock prices rose investors sold bonds,
sending interest rates higher.

The Dow Jones industrial average rose set another record Tuesday,
bouncing back from last week’s loss to close 0.69 percent higher
at 15,409.39. The S&P 500 index also gained to close 0.63
percent higher at 1,660.06, while the NASDAQ Composite Index
added 0.86 percent, ending at 3,488.89. 

The US stock market is recovering from last week’s losses, when
both the Dow and the S&P 500 went through their first losing
streak in a month. Investors are still worried that the Federal
Reserve might pull out of its economic stimulus program, which
has supported the gains on the stock market.

On Wednesday investors will be eyeing news from the West for
drivers on May 29. Among the major updates is the upcoming
Germany’s release of preliminary data on consumer price
inflation, which accounts for the majority of overall inflation,
as well as fresh unemployment figures. Spain is to hold an
auction of 10-year government bonds. UK will release industry
data on retail sales, an important economic indicator.

Elsewhere in the world, Japan is to release government data on
retail sales, the government measure of consumer spending, which
accounts for the majority of overall economic activity. Australia
is to publish official data on completed construction work, an
important economic indicator.

The Bank of Canada is to announce its benchmark interest rate and
publish its rate statement, which outlines economic conditions
and the factors affecting the monetary policy decision.

Most Asian markets rose Wednesday following the new record of the
Dow Jones in the US. Investors in the region, however, also
remain concerned that the Federal Reserve may taper its bond
purchasing.

Mainland China’s Shanghai Composite climbed 0.5 percent. In South
Korea Kospi gained rose 0.5 percent, Taiwan’s Taiex added 0.7
percent. 

Hong Kong’s Hang Seng however was down 0.6 percent after a
two-day rally, while the S&P/ASX 200 in Australia slipped 0.1
percent.

In Japan the yen strengthened on Wednesday as Japanese stocks
fell. The dollar lost 0.1 percent to 102.26 yen. The Nikkei
struggled to stay up following recent major losses and gained 0.1
percent to 14,326.46.

Oil is currently slightly down, with Brent trading 0.1 percent
lower at $104, while WTI is 0.2 percent lower, trading at $94.70.

This article originally appeared on: RT