New York (AFP) – Global stocks mostly rose Thursday on easing trade tensions, with London and Frankfurt hitting record highs ahead of key US employment data. While the Dow edged lower, both the S&P 500 and Nasdaq advanced, a sign of underlying enthusiasm for equities. “The inability to fall is a very bullish event,” said Adam Sarhan of 50 Park Investments.
The British pound slumped as the Bank of England lowered its UK economic growth forecast by half to 0.75 percent. The announcement came alongside a decision to cut its key interest rate by a quarter point to 4.5 percent in efforts to boost the economy. London’s FTSE 100 was also boosted by pharmaceutical giant AstraZeneca, the stock index’s most valuable company. Its share price climbed more than six percent on a positive outlook following a jump in annual net profit.
While the stock market remains concerned about US President Donald Trump’s trade policy, the newly installed White House’s actions have been less impactful than feared so far, Sarhan said. “There is a lot the market is thankful for and the worst-case scenario did not unfold yet,” he said.
US companies reported a mixed bag of earnings Thursday, with Ford falling after results and Hershey and Eli Lilly advancing. Japanese carmaker Nissan closed up more than seven percent in Tokyo after reports said it was looking for a new partner amid talk that its flagged tie-up with Honda would not go ahead. Honda fell four percent.
There were solid gains across European stock markets. Shares in French bank Societe Generale soared more than 13 percent in Paris after posting better-than-expected results. Frankfurt stocks touched a fresh record high after official data showing German industrial orders rebounded more than expected in December. “For all the doom and gloom, talk of trade wars and tariffs, and broad geopolitical risk, investors keep putting money to work at companies with good valuations,” noted Neil Wilson, analyst at TipRanks trading group.
On currency markets, the dollar pushed higher ahead of the monthly US jobs data for January. The non-farm payroll (NFP) data will be released Friday morning. “Indications of a stronger labor market may spur a bullish reaction in the US dollar as it encourages the Federal Reserve to keep US interest rates on hold, but a weaker-than-expected NFP report may produce headwinds for the greenback as it puts pressure on the central bank to further unwind its restrictive policy,” said a note from strategist David Song on Forex.com.
– Key figures around 2150 GMT –
New York – Dow: DOWN 0.3 percent at 44,747.63 (close)
New York – S&P 500: UP 0.4 percent at 6,083.57 (close)
New York – Nasdaq Composite: UP 0.5 percent at 19,791.99 (close)
London – FTSE 100: UP 1.2 percent at 8,727.28 (close)
Paris – CAC 40: UP 1.5 percent at 8,007.62 (close)
Frankfurt – DAX: UP 1.5 percent at 21,902.42 (close)
Tokyo – Nikkei 225: UP 0.6 percent to 39,066.53 (close)
Hong Kong – Hang Seng Index: UP 1.4 percent to 20,891.62 (close)
Shanghai – Composite: UP 1.3 percent to 3,270.66 (close)
Euro/dollar: DOWN at $1.0387 from $1.0403 on Wednesday
Pound/dollar: DOWN at $1.2436 from $1.2505
Dollar/yen: DOWN at 151.47 yen from 152.61 yen
Euro/pound: UP at 83.50 pence from 83.18 pence
Brent North Sea Crude: DOWN 0.4 percent at $74.29 per barrel
West Texas Intermediate: DOWN 0.6 percent at $70.61 per barrel
burs-jmb/bjt
© 2024 AFP
