Global stock markets are surging to start a new week.
Britain’s FTSE 100 is up 0.8%.
France’s CAC 40 is up 1.0%.
Germany’s DAX is up 1.2%.
Spain’s IBEX 35 is up 1.1%.
Italy’s FTSE MIB is up 1.0%.
Hong Kong’s Hang Seng closed up 1.4%.
Japan is closed for a holiday.
U.S. stock index futures are up over 1%.
Societe Generale’s Olivier Korber and Sebastien Galy sum up the two market-moving weekend headlines in their FX Daily note:
Risk appetite back with a vengeance
By far the two most important overnight news are: 1) Summers withdrew his name from the Fed race. On Friday betting websites were giving 85% probability of him replacing Bernanke; he was seen as relatively hawkish. 2) Russia and the US struck a deal, where Syria will reveal its chemical stockpile in a week, and the weapons will be eliminated by mid 2014. S&P futures up by more than 1%. Dollar weak across the broad.
Later this week, the Fed holds its two-day FOMC meeting, which is when economists expect to hear that the Fed is tapering its monthly purchases of $US85 billion worth of Treasury and mortgage-backed bonds.