Global stocks mostly rise on China stimulus, earnings

26-Jul-2018 Intellasia | AFP News | 6:02 AM Print This Post

Global stock markets mostly rallied on Tuesday, helped by Chinese stimulus plans and a batch of generally strong US earnings from Google parent Alphabet and others.

In Europe, London’s benchmark FTSE 100 index closed 0.7 percent higher, with Frankfurt’s DAX 30 climbing 1.1 percent and the Paris CAC 40 up 1.0 percent.

On Wall Street, both the Dow and S&P 500 finished solidly higher. But the Nasdaq ended marginally negative as an early-session rally fizzled at midday in a move analysts attributed to profit taking.

“Stock markets are enjoying a decent move higher…receiving a dual boost in sentiment from a proposed Chinese fiscal stimulus and a better than expected set of results from Google-parent company Alphabet,” said David Cheetham, chief market analyst at traders XTB.

While Alphabet suffered a dip in second-quarter profits due to a fine from the European Union, it posted a bigger-than-expected 26 percent jump in revenues to $32.7 billion in an earnings report released after Wall Street closed on Monday.

Its shares rose 3.5 percent.

“With earnings season upon us, there is a growing feeling that markets will be able to focus on a positive corporate trajectory rather than the persistent fears over the potential damage of global trade arising from further tariffs,” said IG market analyst Joshua Mahony.

– ‘Tariffs are the greatest!’ –

However, tensions persist over a global trade war.

With European Commission President Jean-Claude Juncker heading to Washington on Wednesday to meet US President Donald Trump and try to avert an escalation of tit-for-tat tariffs, the US leader tweeted: “Tariffs are the greatest!”

In a separate tweet he claimed that “countries that have treated us unfairly on trade for years are all coming to Washington to negotiate.”

On Tuesday, the Trump administration announced $12 billion in aid for farmers who have been the primary targets of retaliation by trading partners following Trump’s moves, the first acknowledgement that Trump’s controversial approach on trade is having a downside for everyday Americans.

Meanwhile, in a bid aimed at shielding China’s economythe world’s second-largestfrom a worsening trade row with Washington, Beijing on Tuesday signalled it would shift to a looser fiscal policy.

Shanghai’s main stocks index jumped 1.6 percent in response, while the yuan hit a 13-month low versus the dollar.

The programme also lent support to London-listed mining companies like BHP Billiton, Rio Tinto, and Glencore, all of which gained around five percent and stand to benefit from higher Chinese demand for metals.

In Europe meanwhile, shares in French car giant PSA surged 14.9 percent after the owner of Peugeot drove profits higher thanks in part to a major turnaround for its Opel-Vauxhall brand.

– Key figures at 2100 GMT –

New YorkDow: UP 0.7 percent at 25,241.94 (close)

New YorkS&P 500: UP 0.5 percent at 2,820.40 (close)

New YorkNasdaq: DOWN less than 0.1 percent at 7,840.77 (close)

LondonFTSE 100: UP 0.7 percent at 7,709.05 (close)

FrankfurtDAX 30: UP 1.1 percent at 12,689.39 (close)

ParisCAC 40: UP 1.0 percent at 5,434.19 (close)

euro O STOXX 50: UP 1.0 percent at 3,487.28 (close)

TokyoNikkei 225: UP 0.5 percent at 22,510.48 (close)

Hong KongHang Seng: UP 1.4 percent at 28,662.57 (close)

ShanghaiComposite: UP 1.6 percent at 2,905.56 (close)

euro/dollar: DOWN at $1.1682 at $1.1692

Pound/dollar: UP at $1.3144 from $1.3101 at 2100 GMT

Dollar/yen: DOWN at 111.20 yen from 111.35 yen

OilBrent Crude: UP 38 cents at $73.44 per barrel

OilWest Texas Intermediate: UP 63 cents at $68.52 per barrel–finance.html


Category: FinanceAsia

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