Global Stocks Higher as Risk Sentiment Improves
The trading week closed on a high as markets ratified the ECB stimulus measures and an improved oil outlook by OPEC sent oil and global stocks higher, boosting risk sentiment.
Having digested the bold stimulus measures announced by European Central Bank President Mario Draghi, global equities rallied from its initial knee-jerk decline. A strong European trading session saw the financial and banking sector lead the way with gains, indicating an approval of the stimulus measures with included a rate cut into negative territory and an additional 20 billion euros in bond purchases each month.
Germany’s DAX leaped 3.51% to close at 9,831.13, a new 1-month high. France’s CAC 40 closed up 3.27% at 4,492.79, whilst the UK’s FTSE 100 was up 1.71% to close at 6,139.79.
North American Stocks
The improved risk sentiment in Europe continued into the North American trading session with both oil and global stocks making further gains. US stocks closed higher to make it a fourth consecutive week of gains whilst Crude Oil rose to its highest level in the calendar year.
The Dow Jones Industrial Average rose 1.28% or 218.18 to 17,213.31, having at one point reached its highest level since the 6th January. The NASDAQ Composite index jumped 1.85% or 86.31 to 4,748.47, whilst the S&P 500 Composite index closed up 1.64% or 32.62 to 2,022.19. All 10 sectors on the S&P 500 closed in positive territory, as stocks in the Financials, Energy and Health Care industries were the highest performers leading gains. Overall for the week, the S&P 500 closed over 1% higher.
Latest posts by Daniel Simmons (see all)
- 4 Things to Know in Monday’s Market - September 12, 2016
- 4 Things to Know in Thursday’s Market - September 8, 2016
- 4 Things to Know as EOG Resources Merges With Yates Petroleum in $2.5 Billion Deal - September 7, 2016