New York (AFP) – Stock markets climbed Thursday as China signaled more stimulus for the world’s second-largest economy, while a strong outlook from US chip giant Micron gave a further boost to investor optimism. European indexes closed sharply higher in the wake of Beijing’s latest moves, led by Paris and its luxury stocks heavily dependent on Chinese consumers. On Wall Street, the S&P 500 pushed to a fresh record in the latest buoyant round for equities.
China’s President Xi Jinping admitted Thursday that the country was facing new economic “problems” and pledged to ramp up employment and fix its heavily indebted property sector. “After months of market anticipation, the Chinese authorities are finally acknowledging the significant amount of work needed to relaunch the world’s second-largest economy,” said market strategist Patrick Munnelly at traders Tickmill Group. Bloomberg reported that Chinese leaders were also considering pumping more than $140 billion into its large state-run banks.
The Hong Kong stock exchange jumped 4.2 percent and Shanghai finished with a gain of 3.6 percent, extending the week’s advances. In Europe, the Paris stock market finished more than two percent higher on the hopes of rebounding China demand. Shares in luxury giant LVMH and Gucci-owner Kering jumped nearly 10 percent while Hermes ended up nine percent. German stocks climbed 1.7 percent despite an announcement by leading economic institutes that Germany’s economy will shrink this year. In London, the FTSE 100 index rose just 0.2 percent, capped by heavy losses to energy majors BP and Shell.
Crude oil prices dropped more than two percent on expectations of higher output in Saudi Arabia and Libya, according to analysts, despite fears of curbed demand as major economies slow. A tech surge supported gains across the board after a strong earnings outlook from Micron, which sent the company’s shares soaring by nearly 15 percent. The sector also got a boost from South Korean behemoth SK hynix saying it had started mass production of a more advanced artificial-intelligence chip. Tech shares have been the main driver of a surge in global markets this year as demand for all things AI heats up.
There were also big gains for Samsung and Japan’s Sony, while e-commerce titan Alibaba and JD.com joined the tech surge in Hong Kong. Attention is turning to Friday’s release of US personal consumption expenditure (PCE) figures — the Federal Reserve’s preferred gauge of inflation. Debate is swirling on the Fed’s next move after it cut interest rates by 50 basis points last week. But Briefing.com analyst Patrick O’Hare said investors are voicing more worry over excessive valuations, adding, “additional upside from here will feel harder to achieve.”
**Key figures around 2050 GMT -**
New York – Dow: UP 0.6 percent at 42,175.11 (close)
New York – S&P 500: UP 0.4 percent at 5,745.37 (close)
New York – Nasdaq Composite: UP 0.6 percent at 18,190.29 (close)
London – FTSE 100: UP 0.2 percent at 8,284.91 points (close)
Paris – CAC 40: UP 2.3 percent at 7,742.09 (close)
Frankfurt – DAX: UP 1.7 percent at 19,238.36 (close)
Tokyo – Nikkei 225: UP 2.8 percent at 38,925.63 (close)
Hong Kong – Hang Seng Index: UP 4.2 percent at 19,924.58 (close)
Shanghai – Composite: UP 3.6 percent at 3,000.95 (close)
Euro/dollar: UP at $1.1174 from $1.1133 on Wednesday
Pound/dollar: UP at $1.3412 from $1.3324
Dollar/yen: UP at 144.87 yen from 144.75 yen
Euro/pound: DOWN at 83.31 pence from 83.35 pence
Brent North Sea Crude: DOWN 2.5 percent at $71.60 per barrel
West Texas Intermediate: DOWN 2.9 percent at $67.67 per barrel
© 2024 AFP
