Europe markets climb in line with global equities

The S&P roared to an all-time high as stock markets pushed higher around the world yesterday, building on sharp gains won before the weekend thanks to a strong US jobs report.
The S&P 500 shot to a new intraday record in opening deals as Wall Street shrugged off worries over slow global growth and markets which have been whiplashed by post-Brexit volatility.
The S&P 500 rose to as high as 2,140.69 points, more than five points above the all-time high set more than one year ago, before pulling back.
“The goodwill gained from last Friday’s US non-farms jobs report has carried through...lifting the European indices back to week-highs,” said Spreadex analyst Connor Campbell.
“Crossing the 6,600 (points) mark once again, and tickling 11-month highs in the process, the FTSE is continuing to prove its post-Brexit resilience, boosted by a wave of multinationals ostensibly excited by the cheaper pound.”
London’s benchmark FTSE 100 index closed 1.4% higher.
In the eurozone, Frankfurt’s DAX 30 jumped 2.1% and the Paris CAC 40 advanced 1.8%.
Eyes were also expected to be on the Bank of England this week, which is forecast to possibly cut its key interest rate and announce more stimulus on Thursday after Brexit, a decision which would likely further weigh on the pound.
“There are broad gains for the FTSE this morning amid speculation the Bank of England is preparing to unleash more stimulus this week,” said Neil Wilson, markets analyst at traders ETX Capital.
“The prospect of looser monetary policy will help equities but it’s another nail in sterling’s coffin.”
The pound slumped to 31-year lows against the dollar and tumbled versus other currencies after Britain last month voted to exit the European Union.
The pound drifted up against the dollar in European trading, nearing $1.30.
In London, the FTSE 100 up 1.4% at 6,682.86 points; Frankfurt — DAX 30 up 2.1% at 9,833.41 points and Paris — CAC 40 up 1.8% at 4,264.53 points at the close yesterday.
Meanwhile the Dow Jones Industrial Average rose 0.7%, while the tech-rich Nasdaq Composite Index climbed 0.8%.
Analysts at Wells Fargo said “investors appear optimistic on the US economy following Friday’s better-than-expected jobs report.”
The US Labour Department said on Friday 287,000 jobs were created in June, 112,000 more than expected and a sharp improvement on May’s 11,000 that had raised fears of a potential recession.
The jobs data had lit a fire under Wall Street on Friday, with the S&P 500 barely missing striking a new record.
Primed by those gains, which brought some much-needed optimism back to the market after the recent hammering to stocks caused by Britain’s vote to leave the European Union, Asian markets surged higher yesterday.
Tokyo led the wave higher, soaring 4.0% by the close, following the landslide election victory at the weekend for Japan’s Prime Minister Shinzo Abe’s ruling party.
“Investors are basically welcoming the victory of Abe’s ruling coalition,” Daisuke Uno, chief market strategist of Sumitomo Mitsui Banking, told AFP.
“But the question is whether or not stock prices can keep up this pace.”
The yen slumped however, halting a four-day rally, as the win fuelled speculation for a fresh round of stimulus, reportedly worth as much as ¥20tn ($120bn), to kick start the stumbling Japanese economy.