LONDON: Global stock prices rose on Tuesday on the back of solid second-quarter US corporate earnings which temporarily took investor attention off festering trade wars, dealers said.
“Global equity bulls were lingering in the vicinity during Tuesday’s trading session as investors diverted some attention from trade war concerns to focus on strong US corporate earnings,” said Lukman Otunuga, a research analyst at FXTM.
But even as market players picked up bargains following the previous day’s tepid session, gains were capped by continuing concerns about the simmering trade war between China and the US.
Key European stock markets were higher at the close as shares in energy firms surged along with oil prices, which were in turn boosted by US President Donald Trump re-imposing stiff sanctions on major crude producer Iran.
– ‘Rising tide’ –
“Earnings season is shaping up very well indeed, which accounts for why US equities remain comfortably ahead of the likes of Europe, but a rising tide lifts all boats and will reinforce the impression that this economic recovery and its associated bull market has further to run,” said IG analyst Chris Beauchamp.
On Wall Street approaching midday, the Dow was solidly higher while the S&P 500 index was also up, moving within reach of its all-time high of 2,872.87, hit in January.
Analysts cited the strong second-quarter earnings season as a supporting factor, with S&P 500 companies so far reporting 24 percent higher profits compared with the year-ago period.
US companies could also authorize as much as $1 trillion in share buybacks this year following that profit surge, according to a note from Goldman Sachs.
As investors awaited the next chapter in the long-running trade tariffs dispute, they moved in to pick up cheaper stocks in Asia, too.
Hong Kong was up 1.5 percent as it built on Monday’s gains. Shanghai surged to close 2.7 percent higher, a day after hitting a near two-and-a-half-year low. Tokyo jumped 0.7 percent and Singapore 1.8 percent.
– Key figures at 1540 GMT –
London – FTSE 100: UP 0.7 percent at 7,718.48 points (close)
Frankfurt – DAX 30: UP 0.4 percent at 12,648.19 (close)
Paris – CAC 40: UP 0.8 percent at 5,521.31 (close)
EURO STOXX 50: UP 0.7 percent at 3,507.27
New York – Dow Jones: UP 0.6 percent at 25,654.23
New York – S&P 500: UP 0.3 percent at 2,858.55
Tokyo – Nikkei 225: UP 0.7 percent at 22,662.74 (close)
Hong Kong – Hang Seng: UP 1.5 percent at 28,248.88 (close)
Shanghai – Composite: UP 2.7 percent at 2,779.37 (close)
Euro/dollar: UP at $1.1593 from $1.1554 at 2100 GMT
Pound/dollar: UP at $1.2954 from $1.2944
Dollar/yen: DOWN at 111.18 yen from 111.40 yen
Oil – Brent Crude: UP 51 cents at $74.26 per barrel
Oil – West Texas Intermediate: UP 11 cents at $69.12
Source: Brecorder
