The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 3.4 per cent to 3169.56, while the Shanghai Composite Index gained 3.3 per cent, to 2916.62 points. Japan’s Nikkei stock index slipped 0.5% after rallying 1.4% in the previous session. The benchmark S&P 500 index .spx has risen about 1.6 percent in May and is set to record its third straight month of gains. A big gainer on Monday was the dollar (http://www.marketwatch.com/story/gold-clings-to-1200-an-ounce-after-yellen-says-rate-increases-coming-within-months-2016-05-30), which hit a level above Yen111 against the yen, while gold prices (http://www.marketwatch.com/story/gold-clings-to-1200-an-ounce-after-yellen-says-rate-increases-coming-within-months-2016-05-30) struggled to hold onto the $1,200-an-ounce level.
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“The return to USA rate hike expectations have reopened the possibility of short-term outperformance for European stocks”, said Didier Duret, global chief investment officer at ABN-AMRO Private Banking, adding investors were keeping an eye on the dollar for it to break recent ranges.
Gold fell for the ninth day in a row, its longest losing streak in a year as the USA dollar strengthened after Federal Reserve Chair Janet Yellen said on Friday an interest-rate increase is likely in coming months.
London markets were shut for a public holiday, while the US’ were closed for Memorial Day yesterday.
Investors are awaiting key data this week before taking fresh positions. Ahead of the June 9 statement, USA non-farm payrolls for May are due out next Friday, with the market forecasting a relatively modest 160,000 jobs were added this month, matching the April result, which missed forecasts for 202,000.
Economists expect US employers to have added 170,000 jobs this month, slightly more than they did in April.
The MSCI world equity index, which tracks shares in 45 nations, fell 0.1 percent to 402.66. It was on track for a 2.7 percent gain for the month, its best performance in six months.
Tokyo stocks led Asia higher on Monday, boosted by hopes the government will delay a sales tax hike and by a weaker yen after Federal Reserve boss Janet Yellen hinted that a United States interest rate increase was looming.
Moves in crude oil futures were limited ahead of Thursday’s meeting of the Organisation of the Petroleum Exporting Countries (Opec).
Data released on Tuesday showed U.S. consumer confidence dipped while a survey on business activity in U.S. Midwest also underwhelmed.
Meanwhile, Bullard noted he had been critical of the Fed’s “dot plot” summaries of policymakers rate outlooks recently, saying they may be giving too much forward guidance, removing the Fed’s ability to make data-dependent decisions. Brent crude edged down 0.1 per cent to $49.25 a barrel, after gaining 1 percent last week.
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The recent recovery in risk sentiment in recent days pushed gold to its biggest monthly decline since November.
