European stocks climbed for the first time in six days and the euro strengthened as investors awaited what will probably be the first Federal Reserve interest-rate hike in almost a decade this week. Copper and the dollar fell.
The Stoxx Europe 600 Index rebounded from its lowest level since Oct. 2, while emerging market shares rose from a six-year low. Hong Kong’s Hang Seng Index fell in its longest losing streak since 1984. The euro appreciated for a third day, while Bloomberg’s dollar index fell 0.3 percent. Copper led industrial metals lower and Brent crude dropped for an eighth day. Gold headed for its biggest increase in a week.
A sense of nervousness prevails in global financial markets as investors start a countdown to Wednesday’s Fed meeting, where U.S. policy makers are expected to end a seven-year era of near-zero borrowing costs. Weakness in high-risk credit markets has sparked fear of contagion, unsettling markets along with the gyrations in crude oil.
The Stoxx Europe 600 gained 1.2 percent at 8:14 a.m. in London. France’s CAC 40 rallied 1.7 percent and Germany’s DAX Index advanced 1.6 percent.
Renewed anxiety over China’s economy continued to be felt in financial markets Wednesday, with U.S. and Japanese stock index futures slipping with copper and Australia’s currency ahead of data on prices from Asia’s largest economy.
Global equities snapped their longest rally since February on Tuesday as Asian shares retreated and the Standard & Poor’s 500 Index fell from a seven-week high amid a plunge in Chinese imports. Futures contracts foreshadowed further stock declines in Tokyo, and Seoul as Australian equities extended losses, while the yen held near a 1 1/2-week high. The Aussie, a China bellwether given the countries’ trading links, fell a second day after halting its longest rally since 2009. Copper futures dropped as oil held below $ 47 a barrel.
Concerns over China fueled last quarter’s worst slump for global equities since 2011.
In Japan, futures on the Nikkie 225 Stock Average were bid down 0.5 percent in the Osaka pre-market to 18,120, with the yen at 119.76 per dollar following a two-day advance. Yen-denominated contracts on the gauge were little changed at 18,100 in Chicago, following a retreat of 1.4 percent in the previous session. Futures on South Korea’s Kospi index fell 0.3 percent in most recent trading.
Australia’s S&P/ASX 200 Index slipped 0.5 percent in the first few minutes of trading, falling a third day, as the nation’s second-biggest bank boosted home-loan rates, fueling speculation over more easing. New Zealand bucked the global trend, with its S&P/NZX 50 Index up 0.4 percent in a fourth straight day of gains.
In Hong Kong, futures on the Hang Seng and Hang Seng China Enterprises indexes signaled gains, rising at least 0.1 percent following losses in the Tuesday session. FTSE China A50 Index futures were also up, climbing 0.4 percent in most recent trading following declines in the largest U.S. exchange-traded fund tracking Chinese shares. The Deutsche X-trackers Harvest CSI 300 China A-Shares ETF lost 0.5 percent last session, after jumping 3.7 percent on Monday.
Source : Bloomberg