LONDON (AP) — Stock markets around the world have started the new week strongly with sentiment in Europe buoyed further by a strong German economic survey that reinforced hopes that the region’s recovery is gaining momentum.
KEEPING SCORE: In Europe, France’s CAC-40 rose 1.1 percent to 5,323 while the FTSE 100 in London gained 0.6 percent to 7,467. Germany’s DAX was 0.8 percent higher at 12,840. Wall Street was poised for a solid opening with Dow futures and the broader S&P 500 futures 0.3 percent higher.
GERMANY BUOYANT: Sentiment in European markets was already upbeat following Wall Street’s recovery on Friday, which carried through into Asian markets on Monday, when Germany’s IFO Institute published its latest monthly survey of business confidence. Its monthly confidence index rose to a record 115.1 in June from the previous month’s previous all-time high of 114.6. The German economy, Europe’s biggest grew by a quarterly rate of 0.6 percent in the first three months of the year. IFO’s survey suggests a further pick-up in the second quarter.
ANALYST TAKE: “This is just the latest in a long line of encouraging economic indicators, with the eurozone seemingly emerging from years of decline,” said Joshua Mahony, market analyst at IG.
ASIA’S DAY: The Shanghai Composite Index rose 0.9 percent to 3,185.44 and Hong Kong’s Hang Seng added 0.7 percent to 25,862.49. Tokyo’s Nikkei 225 advanced 0.1 percent to 20,153.35 and Seoul’s Kospi gained 0.4 percent to 2,388.66. Sydney’s S&P-ASX 200 rose 0.1 percent to 5,720.20 and benchmarks in New Zealand, Taiwan and Bangkok also gained.
TAKATA BANKRUPTCY: Japanese air bag maker Takata Corp. filed for protection from its creditors in Tokyo and the United States on Monday, overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators linked to 16 deaths. Takata confirmed most of its assets will be bought by rival Key Safety Systems for about $1.6 billion (175 billion yen). Takata’s inflators can explode with too much force when they fill up an air bag, spewing out shrapnel. So far 100 million inflators have been recalled worldwide. The recalls, which are being handled by 19 automakers, will continue. Experts say the companies must pay for a significant portion of the recalls because Takata’s assets are inadequate.
OIL: Oil prices last week hit their lowest point since August before rebounding but still are about 15 percent below where they were a year ago on expectations supplies exceed demand. They were steady Monday with the benchmark New York rate up 11 cents at $43.12 a barrel. Brent, the international standard, was 7 cents higher at $45.61 a barrel.
CURRENCIES: The euro was down 0.1 percent at $1.1187 while the dollar rose 0.4 percent to 111.69 yen.
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