The global markets turned positive at the close of last week. A broader market rally in both the Asian and European markets. The hint of extended monetary easing measures by the European Central Bank along with a strong rebound in crude oil lifted market sentiments.
Asian markets closed positive
Among the major Asian indices, Japan’s Nikkei 225 soared the most by 5.88% to 16,958.53. Hong Kong’s Hang Seng rallied up by 2.90% to 19,080.51. The Shanghai SE Composite Index, Australia ASX All Ordinaries and Taiwan TSEC 50 Index also closed 1% higher.
In the European Markets, France’s CAC 40 was seen trading 3.10% higher at 4,336.84 while Euronext 100 too see an upside change of 3%. Germany’s DAX, England’s FTSE 100 and Switzerland’s Swiss Market Index were all in the green, reflecting a 2% rise from the previous day.
In the absence of any specific data from China, the rally across world markets was driven by renewed hopes that the ECB will announce more monetary easing measures. The bank’s President Mario Draghi left the policy easing prospect open for March when it will meet following the release of major economic data.
Meanwhile, U.S. markets also surged after a key data release late last week indicated that oil reserves did not grow as expected. The data induced a recovery in crude prices, which catapulted nearly 10% from 12-year lows. Crude prices remain under severe pressure following the termination of sanctions on Iran last weekend. World markets were burdened by fears that the problem of an oil oversupply will magnify if Iran pumps more oil that expected.
U.S. markets capitalized on the crude rebound, as the Dow Jones Industrial Average finished the day 1.33% higher at 16,983. S&P 500 was up over 2% passed the 1900 mark. Canada’s TSX 60 ended the day up as well passed the 700 level to 706.83.