Business

Stocks start 2017 with gains, but many markets stay shut

Posted January 02, 2017 12:00 am

The Associated Press

Dancers in traditional costumes perform to celebrate after the opening ceremony of the 2017 trading year at the Korea Exchange in Seoul, South Korea, Monday, Jan. 2, 2017. The Korea Composite Stock Price Index (KOSPI) opened at 2,022.23. (AP Photo/Lee Jin-man)

LONDON - Global stocks rose on the first day of 2017, though trading volumes were thin as many major markets observed New Year's holidays.

Keeping Score

Germany's DAX closed 1 percent higher at 11,598.33 and France's CAC 40 rose 0.4 percent to 4,882.38. Italy's FTSE MIB gained 1.7 percent to 19,566.53, though trading was still suspended in the shares of Monte dei Paschi di Siena, the bank that is due to get a government bailout. Britain's FTSE 100, which closed at a record high on Friday, remained closed.

Upbeat Data

Markets were buoyed by a report showing the manufacturing sector in the 19-country eurozone grew at the fastest rate in 68 months in December. The so-called purchasing managers' index rose to 54.9 points from 53.7 points in November. Also helping sentiment was a report published Sunday showing that China's manufacturing sector continued to expand in December, though at a slightly slower pace than the month before.

Analyst Take

"While the eurozone seems to have ended 2016 on the up in economic terms, we are concerned that GDP growth could be increasingly hampered in 2017 by political uncertainties," said Howard Archer, global economist at IHS Markit. Those uncertainties include Britain's formal start to talks to leave the European Union and elections in France and the Netherlands, where far-right parties that favor leaving the euro are expected to do well.

Holiday Impact

Trading was slow as many markets were closed to observe the New Year's holiday. Besides Britain, markets were closed in Japan, China and Hong Kong and were due to remain shut in New York. Of those that did trade in Asia, India's Sensex ended the day 0.1 percent lower at 26,595.45 while South Korea's KOSPI was flat at 2,026.16.

Currencies

The dollar started the new year with broad gains in currency markets. It was at 117.46 yen, up from 117.00 the previous day. The euro was trading at $1.0476, from $1.0443.

Trading in several commodities, including crude oil, was closed on Monday.

South Korean Chairman of the Financial Services Commission Yim Jong-yong, third from left, applauds with other participants during the opening of the 2017 trading year at the Korea Exchange in Seoul, South Korea, Monday, Jan. 2, 2017. The Korea Composite Stock Price Index (KOSPI) opened at 2,022.23. (AP Photo/Lee Jin-man)

A man is reflected on an electronic board showing benchmark indexes of the global markets during the opening of the 2017 trading year at the Korea Exchange in Seoul, South Korea, Monday, Jan. 2, 2017. The Korea Composite Stock Price Index (KOSPI) opened at 2,022.23. (AP Photo/Lee Jin-man)

The benchmark indexes of the global markets are reflected on a window as a man is seen through a window during the opening of the 2017 trading year at the Korea Exchange in Seoul, South Korea, Monday, Jan. 2, 2017. The Korea Composite Stock Price Index (KOSPI) opened at 2,022.23. (AP Photo/Lee Jin-man)

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