Is this optimism we see in the markets this morning? Let's put it this way: When was the last time you saw a headline that said: European Stocks Advance on Japan Growth?
Yet, that is the headline, both on Bloomberg News and on the CBC. Stocks across the world are broadly higher, with U.S. stock futures also pointing north, about two hours before trading on Wall Street begins.
Global investors are pinning their hopes of economic growth on Japan? Here are the numbers: Japanese gross domestic product fell 0.3 per cent in the second quarter, less than a median forecast for a 0.7 per cent contraction and a 0.9 per cent decline in January-March.
Britain's FTSE 100 rose 0.4 per cent, France's CAC 40 was flat, and Germany's DAX gained 0.9 per cent, while Japan's Nikkei leapt 1.4 per cent and Hong Kong's Hang Seng surged 3.3 per cent.
Dow Jones stock futures rose 0.3 per cent, or 38 points, to 11,288, while S&P 500 futures gained 0.5 per cent, or 5.3 points, to 1,182.10.
U.S. and core eurozone debt yields rose as investors moved out of bonds and into stocks. MSCI’s all-country world stock index gained 0.8 per cent, marking a 6 per cent gain since hitting an 11-month low last Thursday.
The euro gained 2.5 per cent against the Swiss franc after a Swiss newspaper report said the central bank was poised to set a limit for the euro-franc exchange rate and will use all means to defend it. The U.S. dollar also rallied against the franc, rising 2 per cent.
The Canadian dollar traded at $1.0130 (U.S.).
Gold edged lower, trading $2.10 down at $1,740.50 an ounce.
Copper for three-month delivery declined to $8,860 per tonne from Friday’s $8,865 close.
Crude oil fell to $84.82 a barrel.