Global Stocks Higher Tuesday 07/23 05:58
Global stock markets rose Tuesday on optimism over possible new U.S.-China
talks despite heightened Middle East tensions.
BEIJING (AP) -- Global stock markets rose Tuesday on optimism over possible
new U.S.-China talks despite heightened Middle East tensions.
In early trading, London's FTSE 100 rose 0.6% to 7,556.70 and Frankfurt's
DAX climbed 0.85% to 12,392.70. France's CAC-40 jumped 0.3% to 5584.15.
On Wall Street, futures for the benchmark Standard & Poor's 500 index and
the Dow Jones Industrial Average rose 0.2%.
U.S. Treasury Secretary Steven Mnuchin suggested last week that trade envoys
might meet in person following two rounds of phone conversations, though he
gave no timeline. That helped to temper anxiety over U.S.-Iranian tensions.
Traders have focused on signs of movement toward a settlement of the
U.S.-China tariff war over Beijing's technology ambitions.
They were reassured by an agreement in June by Presidents Donald Trump and
Xi Jinping to resume stalled talks. That is despite warnings the truce is
fragile because the two sides are divided by the same array of disagreements
that caused negotiations to collapse in May.
Investors also were looking ahead to meetings by the European Central Bank
this week and the U.S. Federal Reserve next week.
"Reports of the U.S. and China resuming trade negotiations next week are
positive for risk sentiment, but escalating tensions in the Middle East pushing
oil higher are negative," said ING in a report. "We anticipate wait and watch
sentiment" ahead of the central bank meetings.
In Asia, the Shanghai Composite Index gained 0.5 to 2,899.94 and Tokyo's
Nikkei 225 climbed 1 % to 21,620.88. Hong Kong's Hang Seng advanced 0.3% to
28,465.65. Seoul's Kospi was 0.4% higher at 2,011.45. India's Sensex gained
0.4% to 38,191.44.
Sydney's S&P-ASX 200 gained 0.5% to 6,724.60. New Zealand and Taiwan climbed
while Southeast Asian markets were mixed.
On Monday, the S&P 500 gained 0.3%. The index is back within 1% of its
record, set a week earlier. The Dow edged up 0.1% while the Nasdaq composite
Earnings reports are due over the next two weeks from about three-fifths of
S&P 500 companies. Expectations are generally modest.
Slowing global economic growth and rising costs are weighing on companies.
Many investors are more interested in what CEOs say about how Trump's trade war
will affect profits than in their results for the spring.
Markets also are watching tensions over Iran's nuclear program.
Washington announced sanctions this week on a Chinese oil company, Zhuhai
Zhenrong, that it said violated controls on transporting Iranian crude. Beijing
has said it supports nuclear nonproliferation efforts but rejects unilateral
"This simultaneously turns U.S. pressure up on Iran and also stresses the
already strained U.S.-China relations," Mizuho Bank said in a report.
There is a "significant risk of a longer-term shift toward a more hawkish
stance on the Iran issue" if Boris Johnson becomes the British prime minister
as expected, Stephen Innes of Vanguard Markets said in a report.
"The U.S. administration will waste little time pressuring the new UK PM to
toe a stricter line on the nuclear accord."
ENERGY: Benchmark U.S. crude shed 1 cent to $56.21 per barrel in electronic
trading on the New York Mercantile Exchange. The contract rose 46 cents on
Monday to close at $56.22. Brent crude, used to price international oils, lost
11 cents to $63.15 in London. It gained 79 cents the previous session to $63.26.
CURRENCY: The dollar gained to 108.18 yen from Monday's 107.86 yen. The euro
fell to $1.1183 from $1.1209.