World Economy

Shares Rise on Global Growth Promises

Shares Rise on Global Growth PromisesShares Rise on Global Growth Promises

Global shares were mostly higher Monday, as markets were cheered by upbeat signs from Wall Street, a strengthening US dollar and promises from the Group of 20 nations over the weekend to support global growth.

France’s CAC 40 rose 0.8% in early trading to 4,413.78, while Germany’s DAX added 0.9% to 10,240.47. Britain’s FTSE 100 inched up 0.04% to 6,733.15. US shares were also set to drift higher, with Dow futures adding 0.04% to 18,486. S&P 500 futures were 0.05% higher at 2,168.40, AP reported.

Japan’s benchmark Nikkei 225 inched down 0.04% to finish at 16,620.29. South Korea’s Kospi rose 0.1% to 2,012.32. Hong Kong’s Hang Seng edged 0.1% higher to 21,993.44, while the Shanghai Composite was little changed, inching up 0.1% to 3,015.83. Australia’s S&P/ASX 200 gained 0.6% to 5,533.60.

Envoys of the Group of 20 major economies, meeting in China, promised Sunday to protect the world economy from the shockwaves of Britain’s European Union referendum and to boost sluggish growth, while rejecting trade protectionism. That’s helping ease some investor worries.

The Bank of Japan and Federal Reserve are both holding policy meetings this week. Record-low interest rates and big stimulus programs from central banks have pushed stocks higher since the financial crisis.

Japan’s economy is barely growing. Economists are speculating about whether its central bank may push more stimulus this week. The US economy is in better shape than other advanced economies, and few expect the Federal Reserve to make a big move at its meeting. But if it highlights the better-than-expected recent economic reports, economists may move up their predictions for when the Fed could next raise interest rates. The Fed pulled rates off their record low in December but has held pat since then.

“The Bank of Japan is scheduled for a press conference this Friday, and the market is anticipating the bank will join Prime Minister Shinzo Abe’s government plan to finalize one of the biggest spending packages in three and a half years,” Alex Wijaya, senior trader at CMC Markets, said about a stimulus package being promised by Abe.

The price of US crude fell 32 cents to $43.87 a barrel. Brent crude, the global benchmark, slipped 37 cents to $45.32 a barrel in London.

The dollar ticked up to 106.31 yen from 105.87 late last week in Asia. The euro dipped to $1.09 from $1.10.