World stocks rise on politics and holiday retail hopes
By Hilary Russ NEW YORK (Reuters) - U.S. stocks rose on Monday, fuelled by gains in retailer shares during a prime holiday shopping period, while European stocks rallied after signs that Italy was preparing to rework spending plans that have fuelled tensions with the European Union
By Hilary Russ
NEW YORK (Reuters) - U.S. stocks rose on Monday, fuelled by gains in retailer shares during a prime holiday shopping period, while European stocks rallied after signs that Italy was preparing to rework spending plans that have fuelled tensions with the European Union.
Oil bounced back after its own "black" Friday, adding to risk-on sentiment, and the pound rose after Britain's Brexit agreement won approval from European leaders.
Italy's governing coalition may reduce next year's budget deficit target to as low as 2 percent of gross domestic product to avoid disciplinary action from the European Commission, Reuters reported.
Currently, Italy's deficit target is 2.4 percent, far higher than the 0.8 percent set by the previous government. The country's budget has put it in dispute with the Commission and alarmed the euro zone.
The prospect of a lower deficit sent Italy's banks index <.FTIT8300> up 4.83 percent on Monday, toward its strongest day since June. An equally strong rally in bond markets sent Italian borrowing costs to their lowest since September. [.EU][GVD/EUR]
The euro was
The euro gave up earlier gains against the greenback after European Central Bank President Mario Draghi acknowledged slowing growth in the region.
The dollar index <.DXY> rose 0.14 percent.
Wall Street rose as retailers anticipated $7.8 billion in sales on the largest online shopping day of the year, with shoppers who missed out on Black Friday deals expected to flock to the internet for Cyber Monday. [.N]
"All indications are that the holiday shopping sales are robust, and consumer discretionary is catching a little bit of a break today over enthusiasm over Black Friday, Cyber Monday," said Art Hogan, chief market strategist at B. Riley FBR in New York.
The Dow Jones Industrial Average <.DJI> rose 312.63 points, or 1.29 percent, to 24,598.58, the S&P 500 <.SPX> gained 38.74 points, or 1.47 percent, to 2,671.3 and the Nasdaq Composite <.IXIC> added 129.71 points, or 1.87 percent, to 7,068.69.
The pan-European STOXX 600 index <.STOXX> rose 1.23 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> shed 0.48 percent.
On Friday, the S&P 500 recorded its lowest close in six months, down more than 10 percent from September's peaks, pushing it back into "correction" territory. [.N]
Oil rose above $60 a barrel on Monday, recovering some of the previous session's near-7 percent fall, although uncertainty over global economic growth limited the gains.[O/R]
U.S. crude oil futures
Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
(Additional reporting by Marc Jones, Amanda Cooper and Tom Finn in London; Karen Brettell in New York; Amy Caren Daniel in Bengaluru; Editing by Dan Grebler)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.