European Stocks Rise As USD Recovers Versus EUR

European shares started the week strongly on Monday, buoyed by a weaker euro, while the dollar rose after upbeat jobs data on Friday bolstered investor confidence in the strength of the U.S. economy.

Wall Street looked set for modest opening gains ESc1 1YMc1, according to index futures. Earlier, Asian shares edged lower as investors looked to Chinese economic data due late this week which is expected to show the world’s second-largest economy is still sluggish.

Crude oil prices fell towards their lowest levels of the year after OPEC failed to agree on output targets that could cut a global glut.

Investors are caught between the European Central Bank’s moves last week to stimulate growth and inflation, which disappointed many, and next week’s U.S. Federal Reserve policy meeting, at which interest rates are expected to rise for the first time since 2006.

The pan-European FTSEurofirst 300 stocks index .FTEU3 rose 1.5 percent, boosted by healthcare stocks and as a weaker euro lifted exporters. Germany’s exporter-driven DAX .GDAXI added 2.2 percent. European shares closed at three-week lows on Friday after the euro soared in reaction to Thursday’s ECB decision.

Via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza