ZCZC
BCN-10
WORLD-MARKETS
Global stocks mostly rise despite US retailer weakness
NEW YORK, Jan 11, 2019 (BSS/AFP) – Global stocks mostly rose Thursday,
with positive sentiment on US-China trade talks offsetting disappointing
holiday sales from some US retailers.
China said that trade talks in Beijing with a US negotiating team had
“laid the foundation” to resolve concerns held by both sides in a bruising
trade war, essentially echoing upbeat comments from US officials the prior
day.
Discussions between US and Chinese officials to find a way out of an
impasse that has seen the world’s top two economies impose tariffs on
hundreds of billions of goods and imperil global growth have fueled gains in
recent days.
Markets have also gotten a lift from a dovish posture by Federal Reserve
Chairman Jerome Powell at a panel discussion January 4 and amplified in Fed
meeting minutes released Wednesday.
On Thursday, Powell briefly sent US stocks lower after telling an
afternoon Washington event that the Fed’s large securities holdings should be
“substantially smaller” than the current level of just under $4 trillion.
But US stocks recovered, with the S&P 500 finishing up 0.5 percent.
“It wasn’t easy, as investors wrestled with some earnings warnings and
some comments from Fed Chair Jerome Powell but the story of the day once
again involved buying the intraday dips and the market remaining resilient to
selling efforts,” said a summery from Briefing.com.
London and Frankfurt won modest gains, while Paris edged lower.
In the United States, retailers were an especially weak group after Macy’s
cut its profit forecast following a disappointing holiday shopping season.
Macy’s ended down 17.7 percent.
Target fell 2.9 percent after it reported a 5.7 percent jump in comparable
holiday sales but did not boost its profit forecasts.
Other retailers that fell included Best Buy, down 1.7 percent, Gap, down
3.1 percent and Williams-Sonoma, down 2.4 percent. Walmart gained 0.1
percent.
Analysts said the disappointing holiday performance underscored the
challenges facing brick-and-mortar retailers as they shift more to online
sales where profit margins are lower.
– Key figures around 2200 GMT –
New York – Dow: UP 0.5 percent at 24,001.92 (close)
New York – S&P 500: UP 0.5 percent at 2,596.64 (close)
New York – Nasdaq: UP 0.4 percent at 6,986.07 (close)
London – FTSE 100: UP 0.5 percent at 6,942.87 (close)
Frankfurt – DAX 30: UP 0.3 percent at 10,921.59 (close)
Paris – CAC 40: DOWN 0.2 percent at 4,805.66 (close)
EURO STOXX 50: DOWN 0.2 percent at 3,075.73 (close)
Tokyo – Nikkei 225: DOWN 1.3 percent at 20,163.80 (close)
Hong Kong – Hang Seng: UP 0.2 percent at 26,521.43 (close)
Shanghai – Composite: DOWN 0.4 percent at 2,535.10 (close)
Dollar/yen: UP at 108.49 yen from 108.17 at 2200 GMT
Euro/dollar: DOWN at $1.1502 from $1.1543
Pound/dollar: DOWN at $1.2746 from $1.2789
Oil – Brent Crude: UP 24 cents at $61.68 per barrel
Oil – West Texas Intermediate: UP 23 cents at $52.59 per barrel
BSS/AFP/HR/0940