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World stocks higher after S&P 500 tops 5,000

written by Bella Palmer

Germany's DAX gained 0.4% to 16,990.02, the CAC 40 in Paris also rose 0.4%, at 7,676.03, while Britain's FTSE 100 was nearly unchanged at 7,570.41

Shares in Europe rose on Monday after a quiet day in Asia, where most regional markets were shut for holidays.

Germany's DAX gained 0.4% to 16,990.02 and the CAC 40 in Paris also rose 0.4%, at 7,676.03. Britain's FTSE 100 was nearly unchanged at 7,570.41.

The future for the S&P 500 was flat and that for the Dow Jones Industrial Average dropped 0.1%.

In Asian trading, Australia's S&P/ASX 200 slid 0.4% to 7,614.90 and the Sensex in India lost 0.6% to 71,159.98. Thailand's SET advanced less than 0.1% and in Jakarta, the benchmark added 0.9% ahead of an election to be held on Wednesday.

With mainland Chinese markets shut for the week for the Lunar New Year, there was a dearth of market moving news in the region. Tokyo's markets also were closed Monday, for a one-day holiday.

This week will bring an important update from the US on consumer inflation expectations. On Thursday, Japan is due to announce its Gross Domestic Product growth for the final quarter of last year.

The U.S. price data may not have a major impact on monetary policy, “however, the good news is that U.S. inflation probably decreased at the beginning of the year, reinforcing expectations that the Federal Reserve may consider interest rate cuts in the coming months,” Stephen Innes of SPI Asset Management said in a commentary.

On Friday, the S&P 500 gained 0.6%, finishing above 5,000 for the first time, at 5,026.61. It was the 10th record in less than a month for the index, which closed its 14th winning week in the last 15.

The Nasdaq composite climbed 1.2% to pull within 0.4% of its own all-time high, which was set in 2021. It ended at 15,990.66.

The Dow Jones Industrial Average was a laggard, sliding 0.1% to 38,749 a day after it set a record.

Wall Street’s rally has been fuelled by hopes that cooling inflation will lead the Fed to dial down the pressure by cutting interest rates.


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