London (AFP) – Global equities mostly pushed higher on Thursday as strong earnings and inflation data reassured investors. On Wall Street, both the S&P 500 and Nasdaq pushed higher at the opening bell thanks to robust bank earnings.
“There is a good bit of news to digest this morning, including another batch of better-than-expected earnings results from the likes of Bank of America, Morgan Stanley, US Bancorp, and PNC Financial Services,” said Briefing.com analyst Patrick O’Hare. Shares in Bank of America rose 0.7 percent while those in Morgan Stanley jumped 2.5 percent. However, shares in US Bancorp slumped 3.9 percent.
US equities had rallied on Wednesday due to strong bank earnings and inflation data that provided a much-needed shot of relief to investors, reviving hopes of further cuts to interest rates. “Wall Street’s relief rally on Wednesday highlights how worried investors have become, particularly about rate cuts and inflation,” said Bret Kenwell, US investment analyst at eToro trading platform.
Data out Thursday showed that gains in US retail spending had slowed to 0.4 percent in December, missing market expectations of a 0.5 percent gain. “Combined with overwhelming negative sentiment, the latest ‘good not great’ retail sales figure might be enough to thread the needle for Wall Street right now and keep Wednesday’s rally intact,” Kenwell added.
European and Asian indices gained after a Wall Street rally on Wednesday. It was driven by strong bank earnings as well as inflation data that provided a much-needed shot of relief to investors and revived hopes of further cuts to interest rates. The Paris stock market surged around two percent on big gains for the luxury sector after Cartier owner Richemont reported record quarterly sales.
London rose even as data showed the UK economy expanded at a slower pace than expected in November. “It is a sea of green in the European equity space…” noted Kathleen Brooks, research director at XTB trading group. “There are threats to inflation down the road, but they are concerns for another day. For now, stocks are playing catch up, bonds remain stable and the weakening in the dollar in recent days has helped to boost risk sentiment.”
Still, there remains a certain amount of caution ahead of Donald Trump returning to the White House next week. He has promised to ramp up tariffs on imports and slash taxes and regulations, something that many fear could reignite inflation.
Oil prices eased despite uncertainty over a ceasefire deal between Israel and Hamas. Gaza’s civil defense agency said Thursday that Israel had pounded several areas of the Palestinian territory since the announcement of a ceasefire deal, killing at least 73 people and wounding hundreds. Israel accused Hamas of backtracking on parts of the deal announced Wednesday.
Crude futures had won strong support since the announcement Friday of fresh US-UK sanctions on Russia’s energy sector and amid fears Trump will ramp up measures against key producer Iran.
**Key figures around 1600 GMT:**
New York – Dow: FLAT at 43,219.04 points
New York – S&P 500: UP 0.2 percent at 5,960.99
New York – Nasdaq Composite: UP 0.3 percent at 19,577.87
London – FTSE 100: UP 0.9 percent at 8,371.95
Paris – CAC 40: UP 2.0 percent at 7,621.56
Frankfurt – DAX: UP 0.3 percent at 20,639.21
Tokyo – Nikkei 225: UP 0.3 percent at 38,572.60 (close)
Hong Kong – Hang Seng Index: UP 1.2 percent at 19,522.89 (close)
Shanghai – Composite: UP 0.3 percent at 3,236.03 (close)
Euro/dollar: DOWN at $1.0275 from $1.0293 on Wednesday
Pound/dollar: DOWN at $1.2184 from $1.2239
Dollar/yen: DOWN at 155.98 yen from 156.52 yen
Euro/pound: UP at 84.31 pence from 84.08 pence
West Texas Intermediate: DOWN 0.1 percent at $78.60 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $81.95 per barrel.
© 2024 AFP
