Stock markets rose on Monday in Asia and the U.S. as the prospect of a further delay in the Federal Reserve’s plans to raise interest rates and a newfound stability in the commodities markets lifted shares. In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7% to touch a two-week high. The Japanese Nikkei extended its rebound from last week’s eight-month low as speculation that the Bank of Japan will expand its stimulus program raised investor confidence. Additionally, a newly signed trade agreement between twelve Pacific-Rim countries, including the U.S., Japan and Canada offered additional support to the market despite uncertainty over the agreement’s long-term benefits.
In the U.S., the Standard and Poor’s 500 Index posted gains for the fifth session in a row, making it the longest winning streak this year. Gains in the U.S. stock market followed a set of economic data releases that may push back the Federal Reserve’s intended interest rate hike to next year. The S&P 500 added 35.69 points, or 1.83%, to trade at 1,987.05 as all ten sectors close the trading session higher. The Dow Jones Industrial Average rose 304.06 points, or 1.85%, to trade at 16,776.43 with only Nike Inc. (NYSE:NKE). closing in the red with a 0.75% decline. The NASDAQ Composite gained 73.49 points, or 1.56%, to trade at 4,781.26. Wall Street’s recent rally came on the heels on of one of the biggest corrections in the last four years as Friday’s soft employment data sent the market upwards.
In commodities, oil price gained more than two percent on Monday as Russia displayed signs that it is willing to discuss oil production policies with other countries as the global supply glut continues to weigh down on the markets worldwide. However, some analysts point to Russia’s new initiative as a form of appeasement amid global turmoil and rekindled cold war-era tensions as Russian forces begin their campaign against IS forces in Syria. Crude oil moved slightly lower overnight, losing 5 cents, or 0.11%, to trade at $46.21 a barrel.
This week’s major economic data releases include Tuesday’s U.S. balance of trade and the Australian interest rate decision. The Bank of Japan will announce its interest rate decision on Wednesday, followed by the Bank of England’s interest rate decision and Federal Reserve’s FOMC minutes. To conclude the week, Canadian employment data will be released on Friday.