Major indices around the world posted gains Wednesday, a development that came on the back of positive economic data in the U.S., Europe and Asia. Rebound in commodities prices also aided the gains.
What happened in Europe?
European stocks were mostly up in Wednesday’s trading. The Stoxx Europe 600 jumped 0.6% in midmorning action and was on track to register its fifth session of consecutive gains. Still in Europe, the London’s FTSE 100 was trending up 0.4% in midmorning trading, showing indications of ending the day at its highest level since the beginning of 2016.
Recent labor data showed that the European unemployment rate shrunk to 10.3% in January compared to 10.4% in December. Economists had projected that the region’s unemployment rates in January would hold steady at the same level as the previous month, but things turned out to be better than they thought.
Asian stocks rally
Asian stocks surged Wednesday, tracking the strong finish on Wall Street on the previous day.
The Australia S&P ASX 200 index closed 2.01% up. The gains were driven by strong showing in the Financials, Resources and Energy industries. Data that showed Australian economic expanded faster than anticipated also aided the Wednesday gains.
Japanese shares also closed strongly on Wednesday with the Nikkei 225 adding 4.11%. Most of the support in the Japanese index came from Shipbuilding, Electricals and Insurance sectors.
In Taiwan, the Taiwan Weighted rose 0.69% to touch a new 3-month high at close. Gain in Taiwanese stocks was driven for the most part by Trading/Consumer Goods, Other Electronics and Transport sectors.
In China, the Shanghai Composite Index added 4.3%.
Although some worldmarkets had their individual positive data points that paved the way for stock gains, positive U.S. economic data appears to have had far-reaching favorable impact on the global indices. At close on Tuesday, both the S&P 500 and Dow Jones Industrial Average registered their largest single-day advances since January. Economic data that pointed to strengthening U.S. manufacturing and construction sectors lifted investor sentiments and the impact is being felt in China and other places in the world.