ZCZC
BCN-11
WORLD-STOCKS-MARKETS-ECONOMY
World stocks power on as sterling halts slide
NEW YORK, July 11, 2018 (BSS/AFP) – Global stock markets mostly rose
Tuesday with investors feeling optimistic about the upcoming corporate
results season, especially in the United States.
Wall Street rose for the fourth straight session, with investors casting
aside worries about trade conflicts to focus on forecasts for year-over-year
profits in energy and other sectors.
The pound stemmed its decline against the dollar and euro after key
resignations from the British government over Brexit hammered the currency.
“With the prospect of a positive earnings’ season ahead of us, investors
seem to have forgotten the threat of further trade tensions,” said
Konstantinos Anthis, head of research at ADSS.
According to the FactSet data provider, S&P 500 company earnings are
expected to grow 20 percent in the second quarter.
But when adding in “the potential for positive surprises,” growth could
well exceed 23 percent, said Hussein Sayed, chief market strategist at FXTM.
– Sterling creeps back –
The pound remained under pressure but managed small gains, one day after
Brexit divisions sparked the shock resignations of two senior ministers
including Foreign Secretary Boris Johnson.
Both Johnson and Brexit minister David Davis quit Monday in a heavy blow
to Prime Minister Theresa May’s authority — and her plan for leaving the
European Union.
The news sparked speculation of a potential leadership challenge and the
threat of another general election.
“Theresa May defiantly stood her ground on Monday,” said Jasper Lawler,
analyst at London Capital Group.
“With threats of a vote of no confidence unfounded, she lives to fight
another day as prime minister…(and) the pound managed to pick itself up.”
But the market remains nervous about any signs of a leadership challenge
to May, said XTB analyst David Cheetham.
“Should one occur, and be successful, then there is the potential for
further declines in sterling,” he said.
MORE/HR/1018
ZCZC
BCN-12
WORLD-STOCKS-MARKETS-ECONOMY 2 LAST NEW YORK
– Stocks climb –
Back in stock markets, Europe followed most of Asia higher after another
strong lead from New York on Monday.
Frankfurt’s gains came despite a gloomy ZEW survey showing that German
investor confidence had plunged sharply in July.
US earnings season gets started in earnest on Friday with reports from
large banks. But PepsiCo surged nearly five percent after reporting better-
than-expected results that also lifted other consumer shares.
Oil prices rose, partly on expectations of US sanctions on key producer
Iran and ongoing political and economic turmoil in Venezuela.
Traders were also watching Norwegian oil production after strike action at
Shell facilities in the North Sea prompted the first outages.
– Key figures around 2045 GMT –
New York – Dow: UP 0.6 percent at 24,919.66 (close)
New York – S&P 500: UP 0.4 percent at 2,793.84 (close)
New York – Nasdaq: UP less than 0.1 percent at 7,759.20 (close)
London – FTSE 100: UP 0.1 percent at 7,692.04 (close)
Frankfurt – DAX 30: UP 0.5 percent at 12,609.85 (close)
Paris – CAC 40: UP 0.7 percent at 5,434.36 (close)
EURO STOXX 50: UP 0.4 percent at 3,473.34 (close)
Tokyo – Nikkei 225: UP 0.7 percent at 22,196.89 (close)
Hong Kong – Hang Seng: FLAT at 28,682.25 (close)
Shanghai – Composite: UP 0.4 percent at 2,827.63 (close)
Pound/dollar: UP at $1.3279 from $1.3260 at 2100 GMT Monday
Euro/dollar: DOWN at $1.1746 from $1.1751
Dollar/yen: UP at 111.26 yen from 110.85 yen
Oil – Brent Crude: UP 79 cents at $78.86 per barrel
Oil – West Texas Intermediate: UP 26 cents at $74.11 per barrel
BSS/AFP/HR/1020