Optimism continues on evidence in data (ISFM) (04-01-2011)

Continued optimism about economic recovery was supporting most world stocks today. Positive U.S. and European data helped sentiment, as markets in Japan, Australia, New Zealand and mainland China held their first trading session after the New Year's celebration.

Earlier in Asia, markets ended mostly higher as several commodity, shipbuilding and property shares rose after the strong finish on Wall Street. Leading gains was Japan’s Nikkei, but South Korean shares closed at a record and Chinese stocks posted solid gains in the first trading session, on the expectation that indicators about the American recovery would remain strong for some time. In contrast, Australian shares were under pressure as insurers were hurt in the wake of devastating floods in Queensland State.

Oil prices hovered below $92 a barrel in Asia near a two-year high as a stock market rally to start 2011 boosted crude trader optimism. In currencies, the dollar edged up to 82.24 yen from 81.65 in New York. The euro was slightly lower at $1.3341 from $1.3364.

Stock markets in Europe moved higher led by sharp gains for many U.K. stocks with banks leading gains as the London market reopened after a public holiday. Major markets were up as were some in the beleaguered periphery countries such as Ireland’s ISEQ and Portugal’s PSi 20, but the Greek ASE Composite dropped weighed by shares in Piraeus Bank after the lender announced plans to raise over 800 million euros by selling new shares at a steep 43% discount to their recent price.

Back on Wall Street, U.S. stock futures also pointed upwards after upbeat reports on manufacturing and construction activity helped drive U.S. markets to two-year highs in the previous session.

Source: ISFM