Before the bell: Global markets up on Fed optimism

A strengthening U.S. economy is fuelling trading in global markets on Wednesday.

Investor sentiment was given a boost after U.S. stocks closed at multi-year highs on Tuesday. The Dow Jones Industrial Average closed at its highest level since 2007, while U.S. retail sales for February exceeded expectations, and the Federal Reserve kept interest rates at record lows through to 2014. Moreover, 15 of 19 of the largest U.S. banks passed the Fed's stress test, suggesting they could weather another deep recession if it came to pass.

The benchmark Stoxx Europe 600 Index was up 0.7 per cent at 271.47. London's FTSE 100 gained 0.4 per cent to 5981.22, Frankfurt's DAX was up 0.8 per cent at 7053.70 and Paris's CAC-40 was lifted 0.5 per cent to 3569.48. The euro currency is presently fetching US$1.3045.

Asian bourses were mostly up Wednesday, also buoyed by strong U.S. economic data. But Chinese stocks fell after Beijing made clear it would cool that nation's housing market. Australia's S&P/ASX 200 Index rose 0.9 per cent, South Korea's Kospi gained 1 per cent, Taiwan's Taiex added 1.2 per cent, and Japan's Nikkei 225 Stock Average rallied 1.5 per cent. China's Shanghai Composite finished 2.6 per cent lower, Hong Kong's Hang Seng Index ended down 0.2 per cent at 21,307.89, and the Shenzhen Composite Index skidded 4.1 per cent to 969.12.

On Wall Street, U.S. futures are pointing to a mixed open. Futures for the S&P 500 Index are up 0.1 per cent, Dow Jones Industrial Average futures are down 0.2 per cent and the Nasdaq 100 futures fell 0.1 per cent.

It's a busy day on the economic data calendar: the Mortgage Bankers Association releases Weekly Mortgage Market Index on Wednesday, the U.S. Commerce Department will release Q4 current account deficit numbers, and the Labor Department is due to release its import-export prices for February. Aross the pond, U.K. claimant count and unemployment data, Eurozone industrial production and core consumer price index data are all due.

Here at home, Canada's benchmark closed higher on Tuesday thanks to the positive action stateside. The S&P/TSX Composite Index jumped 109.68 points to 12,537.69 while the TSX Venture Exchange slipped 8.72 points to 1,627.37. The Canadian dollar is presently trading at 101.09¢ US.