LONDON (Reuters) – Global stocks were stable on Monday as a weak eurozone sentiment survey and political uncertainty following Spain's elections proved a drag on previous gains driven by strong economic data out of China and the US.
The MSCI All-Country World Index of Stocks, which tracks stocks in 47 countries, was flat in early afternoon trading in London, giving previous gains up to 0.06 percent.
U.S. Stock futures pointed to a draft open on Wall Street.
European equities, which had strengthened at the opening, were hit by uncertainty related to the formation of a government in Spain and weak eco-economic sentiment data that exacerbated the fear of slowing global growth. The pan-European index was down 0.2 percent.
Spain's underperforming peers, who dropped as much as 0.8 percent, and Spanish government bond yields deep after Prime Minister Pedro Sanchez overwhelmed a challenge from the right nationalists on Sunday elections.
Stocks in Italian banks got a boost and Italian government bonds went after S & P Global (NYSE 🙂 confirmed Italy's sovereign credit rating.
Still nagged by uncertainty over the outlook for the world economy, investors at a meeting of the US Federal Reserve saw this week and Chinese factory data for further clues on political directions in the world's largest economies.
"For stock traders, it looks like the key catalysts are pointing higher: the US sees strong domestic growth, low inflation keeps the Fed in check and can potentially trigger a price swing, so stocks seem to have nowhere to go. go, but higher ̵
Chinese blueprints rose above 1 percent after losing 5.6 percent last week, and Shanghai led stocks into an intraday high in afternoon trading.
In China, fresh data showed that industrial profits grew in March after four months of contraction, but analysts said the sentiment remains fragile. The economists asked by Reuters expect the factory activity in the world's second largest economy to grow at a steady but modest pace in April.
Contrary to the weakness of Asian markets last week, Wall Street ended Friday on a high note, driven by GDP figures
Australian shares were down 0.4 percent after hitting an 11-year high on Friday, while Seoul was up 1.4 percent.
Japan's financial markets are closed for a long national holiday this week, but the Singapore index was 0.9 percent higher.
US Gross Domestic Product grew to a 3.2 percent annual interest rate in the first quarter, although some analysts sounded cautious.
"However, the details (of the GDP release) were apparently less impressive, and the underlying domestic demand grew only 1.3 percent, the slower rate since 2015," said Rupert Thompson, research director at Kingswood.
"Given this mixed image, this coming week's slate of US data releases will be of greater importance to the markets."
The Mars Speech on Personal Expenditure for Consumption (PCE) is Fed's preferred inflation measurement due later on Monday . The central bank's Federal Open Market Committee (FOMC) will announce its political decision on Wednesday, with chairman Jerome Powell expecting to balance the strong domestic growth data against sustained concerns over global prospects.
Markets will also look at global factory activity surveys this week, especially official and private readings on Chinese production that will both be released on Tuesday.
The foreign exchange markets were quiet. The dollar was 0.2 percent higher against the yen of 111.74, and the euro was up 0.1 percent at $ 1.16262.
Whoever tracks the greenback against a basket of six large rivals was almost flat at 98,039.
Oil prices fell and prolonged a fall from Friday ending the week's rally, after President Donald Trump demanded the producer club OPEC increase production to soften the effects of US sanctions against Iran.
fell half a percent to $ 71.81 per barrel.
fell 0.4 percent, trading at $ 1,280.62 per ounce.