Wall Street saw modest gains as global markets recovered from a lackluster week.
Global stock markets managed to lift themselves on Monday after suffering a series of sharp losses last week on Wall Street.
Germany’s DAX index surged 1.7 percent to 12,318.15 and the CAC index in France followed suit with a 1.2 percent increase. On Friday, the DAX shaved off 1.2 percent, while the CAC 40 lost 1.3 percent and London’s FTSE index 100 dropped 1.1 percent. In early trading on Monday, the FTSE 100 was up 1 percent to 7,166.86.
On Wall Street, the Dow Jones industrial average saw an increase by 0.7 percent while the Standard & Poor’s 500 index added 0.6 percent.
In Asia, the Shanghai Composite Index added 0.8 percent to 3,154.13 and Hong Kong’s Hang Seng shed 0.2 percent to close at 29,459.63. Seoul’s Kospi index was up 0.9 percent to 2,385.38. The Japanese market was closed for a public holiday.
Sydney’s S&P-ASX 200 dropped 0.3 percent to 5,820.70 while India’s Sensex index gained 0.6 percent to 34,192.50. Taiwan, Singapore, and Bangkok also reported a stock increase.
Wall Street attempted to recover from its Friday losses and increased the Dow Jones industrial average over 300 points. The Dow was up 1.4 percent to 24,190.90 while the Standard & Poor’s 500 surged 1.5 percent to 2,619.55. The Nasdaq composite rose 1.4 percent to 6,874.49. All three indexes closed lower than 5 percent for the week.
“The severity of the falls globally… suggest we may have already seen the worst, but with bond yields likely to go back up… further weakness cannot be ruled out in the short term,” said Shane Oliver, head of investment strategy and chief economist of AMP Capital.
US legislators have issued a $400 billion budget measure amid conflicts over immigration and other issues that have led to the second temporary government shutdown in almost a month. The budgetary measure was approved Friday and it increases military spending as well as provides $89 billion for disaster relief.
Benchmark US crude was up 81 cents to $60.01 per barrel on the New York Mercantile Exchange. It closed at $59.20 on Friday after dropping $1.95. The international Brent crude gained 82 cents to $63.62 in London.
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