Oct 27, 2014 5:19 AM
World stocks mostly higher after ECB stress tests
The Associated Press
TOKYO (AP) Shares were mostly higher Monday after largely positive results from the European Central Bank's stress tests of financial institutions. Investors are also looking ahead to earnings and a meeting of the U.S. Federal Reserve.
KEEPING SCORE: France's CAC 40 index gained 0.1 percent to 4,132.66 and Germany's DAX added 0.3 percent to 9,013.72. Britain's FTSE 100 rose 0.2 percent to 6,398.22. Futures augured muted trading on Wall Street. Dow futures were up 0.1 percent at 16,751 while S&P 500 futures shed 0.1 percent to 1,958.50.
EUROPEAN TESTS: The European Central Bank said that 13 of Europe's 130 biggest banks failed an in-depth review of their finances and need an extra 10 billion euros ($12.5 billion) to cushion themselves against any future crises. The landmark review showed most of Europe's banks will be purged of bad investments and ready to lend to businesses when the economy finally picks up, the ECB said.
THE QUOTE: "The positive results of a stress test in the European banking sector over the weekend saw to less volatile conditions in Asian markets," Desmond Chua, of CMC Markets, said in a commentary. "The stress tests showed healthy balance sheets in most major institutions while those found with capital gaps are mostly contained in periphery nations."
ASIA'S DAY: Shares were mixed in Asia. Japan's Nikkei 225 stock index climbed 0.6 percent to 15,382.12 and South Korea's Kospi rose 0.3 percent to 1,931.97. Australia's S&P/ASX 200 climbed 0.9 percent to 5,459.00. Elsewhere, Hong Kong's Hang Seng fell 0.7 percent to 23,143.50. Shares also were lower in Singapore, India and Taiwan, but higher in New Zealand.
FED MEETING: Investors are focusing on this week's Federal Reserve policy meeting for confirmation the U.S. central bank is ending its bond buying program; the policy has kept interest rates low to support economic recovery but also boosted stock markets as investors sought higher returns. Recent mixed signals about the strength of the U.S. recovery prompted speculation the Fed might let the program continue for longer, but many analysts consider that outcome unlikely.
ENERGY: Benchmark U.S. crude was up 1 cent to $81.02 a barrel in electronic trading on the New York Mercantile Exchange. It sank $1.08 on Friday to $81.01. Brent crude was down 24 cents at $85.89 a barrel on the ICE exchange.
CURRENCIES: The euro rose to $1.2693 from $1.2670 late Friday. The dollar fell to 107.82 yen from 108.16 yen.