London - the death of al-Qaeda chief Osama bin Laden gave a brief fillip Monday stock market, but the gains were muted as traders positioned for a raft of key economic news in the coming days.
Announcement of the President of the United States Barack Obama that the man behind the deadly September 11, 2001 terror attacks in the United States had been killed in a special forces operation in Pakistan have led to an increase in investor risk appetite. Which usually manifests gains in the stock market and dollar fall.
However, the sheen is during the day, investors turned their eyes to the economic news of the week. Trade levels have been also quite muted, in part because a number of markets have been closed, including those in Britain, China and Hong Kong.
In Europe, the CAC 40 in France closed up 0.1% higher than 4,108.77 while the DAX Germany increased 0.2% to 7,527.64. The United States, the Dow Jones index was trading 0.3 for one hundred more than to 12,844 around noon, New York City time, then the future Standard & Poor 500 larger increased 0.2% to 1,367.
Analysts said that the reflex move higher in the wake of the announcement of the death of bin Laden has largely run its course. More fundamental issues, such as the State of the global economic recovery and how central banks respond to the threat of higher inflation, remain the main drivers.
"It seems fanciful to accept that global equity markets had been chosen for a decade of fear that bin Laden might take another terror attack, somewhere in the world," said Andrew Wilkinson, the senior market to Interactive Brokers analyst. "The world economy has lived through two recessions since the terrorist attacks of September 11".
This week is awash with the significant economic changes that could have an enormous impact on all types of markets.
United States, the term of economic data begins brilliantly with the monthly survey of manufacturing from the Institute of supply management. Its main indicator can be tempered to 60.4 in April of 61.2 in March, is still at a historically high level, and indicates that the manufacturing sector continues grow strongly - any reading above 50 indicates expansion.
"It was a positive report and a positive development for the sense of the market, reflecting strength in the manufacturing sector and recovery continues in the US economy," said Michael Woolfolk, an analyst with the Bank of New York Mellon.
The U.S. Economic News week culminates Friday with the April non-farm of the US Government payroll data. Often, which sets the tone in the markets for a week or two.
In Europe, investors will be either keep tight on the decisions of the European Central Bank interest rates and the Bank of England. Should change the interest rates, although the ECB should not indicate Thursday that he will follow April rates first increase in three years with another place in June.
Monthly manufacturing purchasing managers - a gauge of activity index - for 17 countries that use the euro has been revised up to 58 of the initial estimate of 57.7 in April - reading in April, said the sector was enjoying its highest monthly rate the second expansion since August 2000.
This belief has helped strengthen the euro in the past few months despite the problems of the current debt, including Greece, Ireland and Portugal. While the ECB is poised to raise interest rates again in the coming months, reserve Federal American showed a few signs that it is preparing to lift its super-low interest rates and that is added to the recent weakness of the dollar against the euro.
In times of London in late afternoon, the euro was 0.6 percent higher to a maximum of 18 months nearly $1.4890, while the dollar was less than 0.1% Yen 81.14.
Elsewhere, the price of oil reached their highest level since mid-2008 on the hopes on the global economic recovery despite more early down in the immediate wake of the death of Osama bin Laden. Benchmark crude for June delivery increased increased by 40 cents to $114.33 US per barrel in electronic trade on the New York Mercantile Exchange.
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