European Stocks, Commodity Currencies Enjoy Boost
- China’s ‘One Belt, One Road’ boosts European stocks.
- FTSE bulls want breach of important 7,450 level to be maintained.
- See the DailyFX Economic Calendar and see what live coverage for key event risk impacting FX markets is scheduled for the week on the DailyFX Webinar Calendar.
Would you like to know more about trading the financial markets? DailyFX’s trading guides should be your first stop.
European stocks have been boosted by improved financing for China’s ‘One Belt, One Road’ infrastructure project announced by President Xi Jinping at a summit Sunday and Monday.
Xi hailed the hugely ambitious initiative, which was launched in 2013, as the “the project of the century” as he pledged more than $100 billion in new financing and assistance. China says the plan will revive ancient trade routes from Asia to Europe and Africa, though its critics see it as an attempt to expand Chinese influence. Investors, however, are eyeing it as a chance for Western companies to enjoy new avenues and growth opportunities.
London’s FTSE 100 – up 17.36 to 7,452.50 – and Germany’s DAX – up 13.09 to 12,785.50 – both hit new all-time highs Monday, with the London benchmark breaching an important resistance level in the 7,450 area, where bulls will hope it can remain.
Chart: FTSE 100 Daily Timeframe (December 19, 2016 - May 15, 2017)
Stock market climbs were helped by the big jump in oil prices – and therefore oil shares – on the back of Russia and Saudi Arabia agreeing output cuts until March 2018. The oil rally has also boosted the commodity currencies, such as the Canadian and New Zealand Dollars and the Norwegian Krone. USDCAD dropped to a session low of 1.35960. NZDUSD has gained 0.0022 to trade at 0.6890. USDNOK has shed 0.0260 to trade at 8.5350.
Chart: USDCAD 15-MinuteTimeframe (Intraday May 15)
--- Written by Oliver Morrison, Analyst
To contact Oliver, email him at firstname.lastname@example.org
Follow Oliver on Twitter @OPWMorrison
If you’re looking for trading ideas, check out our Trading Guides; they’re free and updated for the second quarter of 2017
If you’re looking for ideas more short-term in nature, please check out our IG Client Sentiment Data
Would you like to know more about financial market trading, or to get live coverage of major economic events? The DailyFX webinars are for you
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.