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Stock Prices Rise on European Exchanges

On European exchanges, stock prices rose on Monday, continuing the upward trend from last week, as investors were encouraged by data showing that the U.S. economy is growing steadily, without rising inflation.

The STOXX 600 index of leading European stocks was up 0.5 percent around 9:45 AM, continuing its rise from last week.

Meanwhile, the London FTSE index was up 0.05 percent, at 7,225 points, while the Frankfurt DAX strengthened by 0.55 percent, to 12,414 points, and the Paris CAC rose by 0.25 percent, to 5,286 points.

>>>Prices: Globalization has restrained inflation, but it has not ‘killed’ it

European investors were encouraged by a strong rise in stock prices on Wall Street on Friday, following reports showing that employment in the U.S. is rising sharply, indicating that the economy is growing steadily, while inflation remains weak.

In February, the number of employed rose by 313,000, more than expected, while hourly wages increased by only 0.1 percent, after a 0.3 percent rise the month before.

A month ago, this very data on hourly wage growth of 0.3 percent caused a sharp decline in stock indices as it raised fears of rising inflation, which could prompt the U.S. central bank to accelerate the pace of interest rate hikes. However, those fears have now subsided.

>Due to Trump’s announcements of tariff exemptions, global markets are optimistic

The positive sentiment in the markets is also attributed to the easing of fears of trade wars after U.S. President Donald Trump signed a decision last week to impose tariffs on steel and aluminum imports, but also announced a series of possible exemptions.

With the continued rise in stock prices, oil prices also increased this morning. After strengthening by more than 1 percent last week, the price of a barrel in the U.S. market rose by 6 cents, to $62.10.

In the London market, however, the barrel increased by 7 cents, to $65.56. Asian stock prices also rose this morning, with the MSCI Asia-Pacific index up 1.3 percent around 9:45 AM, strengthening for the third consecutive day. On the Tokyo Stock Exchange, the Nikkei index jumped 1.7 percent, to 21,824 points.