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Global stocks mostly rise after strong US earnings
NEW YORK, Oct 17, 2018 (BSS/AFP) – Global stock markets mostly rose
Tuesday as tensions in bond markets eased and several major US companies
reported strong earnings, shifting attention from the doubts that have
plagued equities of late.
Major US indices surged more than two percent in Wall Street’s best
session since March following a plethora of solid results from large banks
and health care companies.
Earlier, European equities also pushed higher amid an apparent fading of
tensions between Italy and the EU over Rome’s spending, and there were also
glimmers of hope that Brexit talks could see some progress.
Asian bourses also had a good day for the most part, with the Nikkei
winning 1.3 percent in bargain-hunting after suffering a big drop the prior
session.
“Investors may not be feeling particularly comfortable yet but we are
seeing some welcome stability in the markets,” said Craig Erlam, an analyst
at Oanda.
Sentiment in the United States was boosted following strong earnings
reports from large companies including Goldman Sachs, Morgan Stanley, Johnson
& Johnson and UnitedHealth Group. All finished at least two percent higher.
“Today what we are seeing is largely related to earnings results,” said
Lindsey Bell, investment strategist at CFRA Research, who added that the
earnings thus far, while upbeat, came from a relatively small number of major
companies.
“It is not going to be all good news throughout the earnings season,” she
said.
The gains helped the market shift focus after worries about high interest
rates and trade war fallout prompted a bruising two-day rout last week that
hung over stocks on Monday, when equities again fell.
Lingering concerns “aren’t going to vanish overnight, yet encouraging
earnings guidance can go a long way toward dulling the stock market’s bearish
senses for the time being and instilling some upside momentum again in growth
stocks,” analyst Patrick O’Hare wrote at Briefing.com.
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Oil prices, meanwhile, continued to edge higher amid continued questions
over the disappearance of Jamal Khashoggi, a Saudi journalist who criticized
the conservative monarchy.
Saudi Arabia stood by denials that the kingdom killed a missing journalist
but backed a “thorough” probe, the United States said.
Analysts said while some oil market tension was to be expected during the
standoff, there was very little chance that Saudi Arabia would weaponize oil
exports in response.
“Obviously, Saudi Arabia has the ability to use oil to put pressure on the
rest of the world,” said Caroline Bain, chief commodities economist at
research consultancy Capital Economics.
“But historically it has always tried to avoid mixing economics and
politics — and has consequently gained a reputation for reasonable behaviour
where oil is concerned,” she told AFP.
– Key figures around 2030 GMT –
New York – Dow Jones: UP 2.2 percent at 25,798.42 (close)
New York – S&P 500: UP 2.2 percent at 2,809.92 (close)
New York – Nasdaq: UP 2.9 percent at 7,645.49 (close)
London – FTSE 100: UP 0.4 percent at 7,059.40 (close)
Frankfurt – DAX 30: UP 1.4 percent at 11,776.55 (close)
Paris – CAC 40: UP 1.5 percent at 5,173.05 (close)
EURO STOXX 50: UP 1.5 percent at 3,257.34 (close)
Tokyo – Nikkei 225: UP 1.3 percent at 22,549.24 (close)
Hong Kong – Hang Seng: UP 0.1 percent at 25,462.26 (close)
Shanghai – Composite: DOWN 0.9 percent at 2,546.33 (close)
Euro/dollar: DOWN at $1.1577 from $1.1579 at 2100 GMT
Pound/dollar: UP at $1.3187 from $1.3152
Dollar/yen: UP at 112.26 from 111.77 yen
Oil – Brent Crude: UP 63 cents at $81.41 per barrel
Oil – West Texas Intermediate: UP 14 cents at $71.92 per barrel
BSS/AFP/HR/0930