14March Markets Closed View

In European Equity Markets stocks extended gains on Monday, with auto stocks propelled by a positive outlook for the sector and miners helped by a steadying of copper prices below four-month highs. The FTSEurofirst 300 was up 0.6 percent, while the Euro STOXX 50 index advanced 0.5 percent. The STOXX Europe 600 Automobiles and Parts index rose 1.3 percent following a positive note from Kepler Cheuvreux, which upgraded its stance on companies such as Daimler, Peugeot, BMW and Continental. The European mining index rose 1.6 percent after data from China at the weekend and comments by a top regulator soothed worries over both the health of the world’s second-biggest economy and the outlook for metals demand.

In Currency Markets the dollar rose on Monday in tight trading, adding to Friday’s gains against the euro and other European currencies as investors pursued riskier European assets and awaited a packed slate of upcoming central bank meetings this week. The dollar rose broadly against major European currencies on Monday. Against the Swiss franc, it added 0.4 percent to 0.9875 franc. Sterling also decreased against the dollar, falling 0.4 percent to $1.4332. The euro fell 0.4 percent to trade at $1.1105, hurt in part by rising stock markets in Europe, which rose more than 3 percent since their close Thursday. The dollar rose 0.6 percent against both the Aussie and the loonie. It added 0.9 percent against the kiwi.

In Commodities Markets global oil prices fell as much as 4 percent on Monday on concerns a six-week market recovery has gone beyond fundamentals, as U.S. crude stockpiles continue to mount and Iran maintains little interest in a global production freeze. U.S. crude was down 4.3 percent, at $36.85 a barrel. It hit a three-month high of $39.02 on Friday. Brent was down 2.9 percent, at $39.19 barrel. The OPEC said global demand for crude from its members, including Saudi Arabia, Iraq and Iran, will be less than previously thought in 2016 due to competing non-OPEC supply. OPEC supply will likely exceed demand by about 760,000 barrels per day, up from 720,000 bpd implied earlier, it said.

In US Equity Markets stocks were little changed on Monday as losses in energy stocks were offset by gains in consumer discretionary stocks and investors paused ahead of the U.S. Federal Reserve’s meeting on monetary policy this week. The S&P 500 fell 0.12 percent, at 2,019.7 and the Nasdaq Composite rose 0.11 percent, at 4,753.64. Starwood Hotels & Resorts was up 7.6 percent after the hotel operator received a takeover offer of $76 per share from a consortium of companies. Marriott, which was set to take over Starwood, was up 2.9 percent. GW Pharmaceuticals rose as much as 132 percent after the company’s experimental cannabis-based drug succeeded in treating children with a rare form of severe epilepsy in a keenly anticipated clinical trial.

In Bond Markets U.S. Treasury debt prices rose on Monday, recovering after an aggressive selloff last week, as investors tried to get back to neutral positions ahead of this week’s twoday Federal Open Market Committee meeting. In mid-morning trading, the benchmark 10-year note rose 6/32 in price to yield 1.955 percent from 1.993 percent on Friday. The 30-year bond was last up 16/32 in price to yield 2.720 percent, down from 2.762 percent late on Friday.


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