Asian Markets are set to start the day slightly higher after European stocks advanced to a five- month high, snapping three days of losses, as France auctioned debt at a lower borrowing cost even after Standard & Poor’s stripped the country of its top credit rating.
US markets were closed for the Martin Luther King Jr Holiday.
The Stoxx Europe 600 Index climbed 0.8% to 251.12 at the close, rising above its 200-day moving average to the highest level since Aug. 3. The benchmark measure earlier fell as much as 0.5%. The gauge erased its gains on Jan. 13, the final day of trading last week, amid reports S&P planned to downgrade several euro-area countries.
U.S. stock-index futures rose as French borrowing costs fell in the first sale of bills since Standard & Poor’s downgraded the country. France sold 1.9 billion euros ($2.4 billion) of one-year notes today at a yield of 0.406%, down from 0.454% on Jan. 9. as investors shrugged off S&P’s downgrade.
The euro weakened for a second day, falling to an 11-year low against the yen after Standard & Poor’s stripped France of its top credit rating and cut eight other euro-region countries. The euro fell 0.1% to $1.2664, after dropping to $1.2626.
Oil climbed from the lowest price in almost four weeks as Iran said that a disruption to crude supplies through the Strait of Hormuz would cause a shock to markets that “no country” could manage. Crude for February delivery rose as much as $1.10 to $99.80 a barrel in electronic trading.
Gold firmed a touch on Monday in U.S. holiday-thinned trade, with firmer stock markets and a recovery in the euro from early lows taking some pressure off the metal, while traders digested last week’s euro zone downgrades from Standard & Poor’s. U.S. gold futures for February delivery were also up in electronic trading.
INDICES
Last Traded
SPI 200 future 4137
S&P500 Index closed
Dow Jones closed
FTSE 100 Index 5657.44
COMMODITIES
Last Traded
Gold 1643.50
Oil (Nymex) 99.69
CURRENCIES
Last Traded
AUDUSD 1.0304
EURUSD 1.2663
GBPUSD 1.5322
USDJPY 76.79
Source
Bloomberg, Dow Jones News