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EUROPE-MARKETS
European stocks take heart from improving growth outlook
LONDON, April 18, 2019 (BSS/AFP) – European stock markets mostly rose
Wednesday as strong data from the world’s two top economies sparked fresh
hope for the growth outlook.
“Global growth concerns seem to be cooling,” analysts at Charles Schwab
said.
US numbers released before Wall Street’s opening bell showed that the
trade deficit in February fell to its lowest level in eight months, thanks in
part to rising aircraft and auto exports, according to government data
released Wednesday.
“This better than expected trade situation creates a really good platform
for 1Q GDP growth,” James Knightley, chief international economist at ING,
said of the US data.
Earlier, Beijing reported that the Chinese economy expanded 6.4 percent in
January-March, the same as the previous quarter but better than forecast by
analysts in an AFP poll.
The news follows a number of readings indicating stability in China, with
factory activity, exports, new loans and inflation all improving — tempering
concerns about a slowdown that could have a major impact on the global
economy.
Markets nevertheless remain concerned over a broader Chinese economic
slowdown — and Beijing’s ongoing trade war with Washington.
– ‘Not as bad as feared’ –
“The longer term trend is very much against China, but these numbers may
at least suggest all is not as bad as feared,” noted Oanda analyst Craig
Erlam.
“And if a trade deal is struck in the coming months with the US, as many
expect, perhaps things could even improve.”
ThinkMarkets analyst Naeem Aslam added that the data handed a boost to the
overall outlook.
“The truth is that the handoff from feeble economic numbers to strong
economic numbers is here and this is good news,” he said.
“Let’s not forget, improving economic conditions over in China means
better economic health of the global economy.”
MORE/HR/1000
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BCN-18
EUROPE-MARKETS 2 LAST LONDON
Eurozone stock markets were firmly in positive territory at the close,
while London lagged its peers as the pound strengthened.
Among individual stocks, shares in Italian club Juventus fell more than 17
percent in late Milan trading after Cristiano Ronaldo’s side were knocked out
of the Champions League quarter-finals by Ajax.
Wall Street was slightly softer in the late New York morning as signs of a
looming EU-US trade spat cooled investor sentiment after the EU unveiled a
wide-ranging list of US-made goods, from beeswax to car parts, subject to
tariffs in retaliation for subsidies to Boeing.
Meanwhile, the US corporate earnings season rumbled on providing, on
balance, support to stock prices.
Elsewhere, oil prices managed to extend gains after a US industry group
reported a surprise drop in stockpiles, while OPEC-led output cuts and US
sanctions on Iran and Venezuela kept a supply glut in check.
– Key figures around 1545 GMT –
London – FTSE 100: FLAT at 7,471.32 points (close)
Frankfurt – DAX 30: UP 0.4 percent at 12,153.07 (close)
Paris – CAC 40: UP 0.6 percent at 5,563.09 (close)
EURO STOXX 50: UP 0.4 percent at 3,477.73
New York – Dow: FLAT at 26,446.99
Pound/dollar: DOWN at $1.3036 from $1.3048 at 2100 GMT on Tuesday
Euro/pound: UP at 86.69 pence from 86.45 pence
Euro/dollar: UP at $1.1300 from $1.1281
Dollar/yen: UP at 112.01 yen from 112.00 yen
Tokyo – Nikkei 225: UP 0.3 percent at 22,277.97 (close)
Hong Kong – Hang Seng: FLAT at 30,124.68 (close)
Shanghai – Composite: UP 0.3 percent at 3,263.12 (close)
Oil – Brent Crude: UP 3 cents at $71.75 per barrel
Oil – West Texas Intermediate: UP 2 cents at $64.07
BSS/AFP/HR/0955