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BCN-01,02
WORLD-MARKETS
Global stocks mostly rise on China stimulus, earnings
NEW YORK, July 25, 2018 (BSS/AFP) – 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.”
MORE/MR/ 1058 hrs
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BCN-02
WORLD-MARKETS-TWO-LAST
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 economy — the world’s
second-largest — from 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 program 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 York – Dow: UP 0.7 percent at 25,241.94 (close)
New York – S&P 500: UP 0.5 percent at 2,820.40 (close)
New York – Nasdaq: DOWN less than 0.1 percent at 7,840.77 (close)
London – FTSE 100: UP 0.7 percent at 7,709.05 (close)
Frankfurt – DAX 30: UP 1.1 percent at 12,689.39 (close)
Paris – CAC 40: UP 1.0 percent at 5,434.19 (close)
EURO STOXX 50: UP 1.0 percent at 3,487.28 (close)
Tokyo – Nikkei 225: UP 0.5 percent at 22,510.48 (close)
Hong Kong – Hang Seng: UP 1.4 percent at 28,662.57 (close)
Shanghai – Composite: 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
Oil – Brent Crude: UP 38 cents at $73.44 per barrel
Oil – West Texas Intermediate: UP 63 cents at $68.52 per barrel.
BSS/AFP/MR/ 1058 hrs