Strong Chinese manufacturing data propelled global stocks on Monday (STR)

New York (AFP) – Stock markets rallied on Monday, building on strong pre-weekend gains, with investors buoyed by forecast-busting Chinese manufacturing data.

Europe and Asia posted gains at the close, and Wall Street registered another strong session to open the second quarter.

Analysts also cited optimism over US-China trade talks as a positive driver.

The broad-based S&P 500 jumped 1.2 percent, extending the positive trend after notching its best quarterly performance since 2009.

Markets had stumbled towards the end of March on worries about slowing growth or a recession but “it feels like some of that concern is receding,” said Art Hogan, chief market strategist at National.

“The data is starting to stabilize,” he said.

US manufacturing data was strong. US retail sales disappointed in February but the result was tempered somewhat by an upward revision to the January data.

The yield on the 10-year US Treasury yield jumped on Monday. Last week’s dip in the benchmark had been seen as a sign of medium-term economic weakness.

But the day’s most oft-cited catalyst was a March purchasing managers index showing growth in the Chinese manufacturing sector was far better than expected. 

“The Chinese manufacturing sector has been under the microscope… as a weekend of positive news for the sector helps drive markets higher,” said Joshua Mahony, senior market analyst at IG trading group. 

“Four months of stagnant and negative growth in the manufacturing sector has understandably hit sentiment globally, given the impact Chinese business has upon global growth.

“Thus it comes as no surprise to see the optimists come out in force today” after the strong figures.

“The manufacturing print… will go a long way to allaying slowdown fears about China, at least in the short-term as the US-China trade talks move back to Washington this Wednesday,” said OANDA senior market analyst Jeffrey Halley.

Top negotiators from the world’s two biggest economies meanwhile flagged progress in last week’s discussions in Beijing on the tariffs row ahead of this week’s talks.

– Key figures around 2100 GMT –

New York – Dow: UP 1.3 percent at 26,258.42 (close)

New York – S&P 500: UP 1.2 percent at 2,867.19 (close)

New York – Nasdaq: UP 1.3 percent at 7,828.91 (close) 

London – FTSE 100: UP 0.5 percent at 7,317.38 (close) 

Frankfurt – DAX 30: UP 1.4 percent at 11,681.99 (close)

Paris – CAC 40: UP 1.0 percent at 5,405.53 (close)

EURO STOXX 50: UP 1.0 percent at 3,385.38 (close)

Tokyo – Nikkei 225: UP 1.4 percent at 21,509.03 (close)

Hong Kong – Hang Seng: UP 1.8 percent at 29,562.02 (close)

Shanghai – Composite: UP 2.6 percent at 3,170.36 (close)

Pound/dollar: UP at $1.3103 from $1.3035 at 2100 GMT on Friday

Euro/pound: DOWN at 85.58 pence from 86.06 pence

Euro/dollar: DOWN at $1.1213 from $1.1218

Dollar/yen: UP at 111.35 yen from 110.86 yen

Oil – Brent Crude: UP $1.45 at $69.01 per barrel

Oil – West Texas Intermediate: UP $1.43 at $61.59 per barrel

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Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.