Global Markets: Stocks climb on hopes for China stimulus; euro slips after data
Major world stock markets climbed on Tuesday, helped by hopes of more stimulus for China`s economy, while the euro declined against the U.S. dollar following weak German economic data.
Stocks in Shanghai and Hong Kong surged almost 2 percent after U.S. President Trump talked up chances of a China trade deal and Chinese officials then came out in force hinting at more stimulus for their slowing economy.
That came a day after data on Monday showed China`s exports unexpectedly fell the most in two years in December, while imports also contracted sharply.
On Wall Street, gains in shares of Netflix, which said it was raising rates for its U.S. subscribers, helped offset losses in JPMorgan Chase & Co, which reported a lower-than-expected rise in quarterly profit and revenue, hurt by weakness in bond trading.
"As we start earnings season with the financials group, it`s not going to be a pleasant picture, at least from the start. It is going to set the tone in negative fashion for fourth-quarter earnings," said Art Hogan, chief market strategist at National Securities in New York.
U.S. stocks slightly pared gains after Republican U.S. Senator Chuck Grassley said United States Trade Representative Robert Lighthizer did not see much progress made on structural issues during trade talks with China last week.
The Dow Jones Industrial Average rose 91.34 points, or 0.38 percent, to 24,001.18, the S&P 500 gained 19.34 points, or 0.75 percent, to 2,601.95 and the Nasdaq Composite added 82.53 points, or 1.2 percent, to 6,988.44.
The pan-European STOXX 600 index rose 0.40 percent and MSCI`s gauge of stocks across the globe gained 0.66 percent.
Germany reported its weakest growth in five years, causing the euro to decline against the dollar.
The euro was last down 0.50 percent, at $1.1417, while Europe`s broad FTSEurofirst 300 index added 0.50 percent, to 1,373.85.
Sterling slipped ahead of a parliamentary vote on Britain`s withdrawal from the European Union. It was last trading at $1.2785, down 0.61 percent on the day.
Worries about Britain leaving the EU at the end of March without some kind of transition deal appear to have eased, but with Prime Minister Theresa May potentially facing the biggest defeat for a government plan in 95 years, uncertainty still dominates.
May`s hopes of keeping her plan alive will hinge on the scale of her expected loss in the vote. Avoiding a heavy defeat could give her the chance to ask Brussels for more concessions before trying to get the plan through parliament in another vote.
But a humiliating outcome could pressure May to delay Britain`s scheduled March 29 EU departure and potentially open up other options, ranging from a second referendum, a dangerous no-deal path, or even a general election.
In commodities, oil prices rebounded on supply cuts by producer club OPEC and Russia.
Brent crude was last up $1.27, or up 2.15 percent, at $60.26 a barrel. U.S. crude was last up $1.42, or 2.81 percent, at $51.93 per barrel.
U.S. Treasury yields were mostly little changed amid negative external factors such as weak European data and concerns over the Brexit deal. Benchmark 10-year notes last fell 1/32 in price to yield 2.713 percent, from 2.71 percent late on Monday.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.