European markets rose for second consecutive trading day, led by an unexpected fall in Chinese manufacturing data which raises investor's hope that government may announce another stimulus. However the data has created hardly any impact on Asian as well as US future markets which remained unchanged after the news pop up. Among mining gainers, the biggest mining company of the world, BHP Billiton Ltd. (BHP) scaled 1.8% higher as copper gained. Out of top gainers, Davide Campari-Milano SpA (CPR) climbed 5.8% as they decided to buy the Jamaican maker of Appleton rum, Lascelles deMercado & Co.
MSCI Asia Pacific Index (MXAP) slipped by only 0.1%, so as the Standard & Poor's 500 Index futures. US markets will remain close today, 3rd Sept 2012 on account of Labor Day holiday. Stoxx Europe 600 Index (SXXP) surged more than 0.4% and recover by 14% from the 52 week low with the expectation that central bank will do quantitative easing as one of the steps toward providing support to the economy. Nick Maroutsos, the managing director and co-founder of Kapstream Capital said that everyone is looking very anxiously towards the steps china is going to follow and the steps European Central bank is going to follow in coming time. He further added that this is the most important stimulus season in terms of fiscal as well as monetary policy.
This week, euro-region nations will ask investors to stake over $25 billion, liquidating the highest debt in last eight weeks exactly before the meeting of central bank on 6th Sept 2012. Belgium, Austria, France and Spain will return to market after a pause of 30 days while Germany will also sell debt. The auction will take place before the meeting of ECB in Frankfurt, where Mario Draghi, the president may disclose the bond-buying program details.
European stocks have posted consecutive weekly losses since the month of May, as financial data from Japan has revealed some crucial evidence that economic growth is slowing further. Besides this, Euro area manufacturing data contracted by figure more than what estimated during the month of August, showing the sluggish trend of economy which may not able to overcome the recession in upcoming quarters.