Global stocks rise after rally on Wall Street

FILE - A pedestrian walks past the New York Stock Exchange, Monday, Jan. 24, 2022, in New York City.  Stocks open higher on Wall Street again on Friday, June 24, keeping the <a class=market on track for strong weekly gains after two trying weeks that saw back-to-back weekly declines of more than 5%. (AP Photo/John Minchillo, File)” title=”FILE – A pedestrian walks past the New York Stock Exchange, Monday, Jan. 24, 2022, in New York City. Stocks open higher on Wall Street again on Friday, June 24, keeping the market on track for strong weekly gains after two trying weeks that saw back-to-back weekly declines of more than 5%. (AP Photo/John Minchillo, File)” loading=”lazy”/>

FILE – A pedestrian walks past the New York Stock Exchange, Monday, Jan. 24, 2022, in New York City. Stocks open higher on Wall Street again on Friday, June 24, keeping the market on track for strong weekly gains after two trying weeks that saw back-to-back weekly declines of more than 5%. (AP Photo/John Minchillo, File)

PA

European stocks were trading higher on Monday after a day of gains in Asia. US futures and oil prices also advanced.

The leaders of the major economic powers of the Group of Seven have pledged financial, humanitarian and other support to Ukraine.

Speaking via video link with Ukrainian President Volodymyr Zelenskyy, they were finalizing an agreement to cap Russian oil prices, raise tariffs on Russian products and impose other new sanctions. Details were to be sorted out by finance ministers, according to a senior US official who spoke on condition of anonymity to preview announcements from the summit.

Markets seemed indifferent to the possibility that Russia defaulted on its foreign debt for the first time since the Bolshevik Revolution of 1917, further alienating the country from the global financial system amid its war in Ukraine.

Russia faced a deadline Sunday evening to meet a 30-day grace period on interest payments originally due on May 27. But it might take time to confirm a fault.

The German DAX gained 0.9% to 13,229.00 while the CAC 40 in Paris gained 0.3% to 6,091.12. Britain’s FTSE 100 advanced 0.7% to 7,260.71.

The S&P 500 futures rose 0.5% while the Dow industrials futures gained 0.4%.

In Asian trading, Hong Kong’s Hang Seng index led regional gains, jumping 2.4% to 22,229.52, while Tokyo’s Nikkei 225 gained 1.4% to 26,871.27. In South Korea, the Kospi climbed 1.5% to 2,401.92.

Australia’s S&P/ASX 200 gained 1.9% to 6,706.00 while the Shanghai Composite Index rose 0.9% to 3,379.19.

Positive inflation news helped lift stocks in New York on Friday, but the boost in sentiment may prove fleeting, “largely because the downward trend in equity indices remains intact and we have seen previous examples of a single event in inflation, the economic outlook, and central bank policies bringing back market jitters and reversing bearish buying sentiments,” said IG’s Jun Rong Yeap in a comment.

The S&P 500 posted a 6.4% gain last week, although it remains nearly 20% below its record high set earlier this year. On Friday, it gained 3.1%, while the Dow Jones Industrial Average rose 2.7%. The tech-heavy Nasdaq ended up 3.3%.

The Russell 2000 of small business stocks added 3.2%.

To combat extremely high inflation, central banks raise interest rates and take other actions that hurt investment prices and could slow the economy enough to cause a recession.

The International Monetary Fund on Friday lowered its forecast for U.S. growth in 2022 to 2.9% from 5.7% in 2021, when the economy rebounded from the pandemic recession. But he said the United States could narrowly avoid recession with careful policy adjustments.

In other trading, the U.S. benchmark crude oil price gained 5 cents to $107.67 a barrel in electronic trading on the New York Mercantile Exchange. It gained $3.35 on Friday at $107.62.

Brent crude, the price standard for international trade, gained 20 cents to $109.30 a barrel.

The dollar rose to 135.16 Japanese yen from 135.11 yen on Friday. The euro fell from $1.0554 to $1.0576.

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