Weak China Data Oils Rise in Global Stocks
Published By : 10 Aug 2015 | Published By : QYRESEARCH
As the global stocks increased on Monday, Dow Jones Industrial Average is expected to rebound from the losing streak in four years.
According to the fuel for gains in stocks provided by disappointing economic data in China, the reports contained a deflation risk from sliding factory prices. This would lift expectations in Beijing as the spending would increase and continue to support the market by buying shares.
The vice chairman of Federal Reserve said on Monday that Fed officials must witness inflation and that inflation remains low. It will return to all the normal levels before the central bank increases its interest rates. He also spoke to the Bloomberg TV and said predictions were not offers when rates could rise.
Investors are anticipated to receive an update on U.S. inflation later in this week. This will be with the reading on producer prices in July. The jobs report maintains the track of Federal Reserve and expects it to lift interest rates as soon as September hits. This move would be the first of its kind in nearly a decade.
The S$P 500 futures increased 0.4% to 2082. The changes in stock do not necessarily and accurately predict moves in the stock market after the opening bell.
Moreover, the e-mini Dow futures increased 0.4% to 17386.
China is facing deflationary pressures and therefore the odds of additional stimulus by the PBOC are just increasing, said managing director at futures brokerage. According to him risks are higher for the same reason.
The Stoxx Europe 600 increased 0.1% although there was a slope down of oil and gas company shares, Germany’s DAX increased by 0.4% and CAC-40 of France by 0.5%.
Crude oil futures increased 0.4% and oil prices increased after three trading days of losses. In many other markets the gold futures increased 0.1%.