London (AFP) – Global stock markets mostly rose Tuesday ahead of US consumer data that could make clearer the outlook for interest rates in the world’s top economy. Investors are also gearing up for the first-quarter earnings season, with some observers warning that profit expectations, which have helped push several markets to record highs, may have gone too far and disappointing reports could spark a pullback in equities.
“After a strong performance last week, investors may be taking a hiatus and possibly enjoying the spring break, while others are adopting a wait-and-see approach for the next bullish catalyst,” said SPI Asset Management’s Stephen Innes.
Other analysts think the rally has yet to run its course. While many consider US equities to be overbought, “there are still many investors who have felt unable to take on enough long-side exposure to benefit from the rally which began in late October,” said David Morrison at Trade Nation. “And as more investors close their eyes, hold their noses and dive in, prices should continue to melt up.”
Data showed US durable goods ordered rebounded slightly more than expected in February. US consumer confidence data was due to come out later in the day. All eyes will be on US inflation data at the end of the week. Recent guidance from the Federal Reserve pointed to three interest rate cuts before the end of the year. But strong economic data and comments from some central bank officials have fuelled worries it could come up short.
Wall Street closed lower Monday as talk swirls that the recent rally may have been overdone. “The wait-and-see mood on the markets is continuing with recent exuberance fading,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Elsewhere on Tuesday, oil prices built on Monday’s rally thanks to worries about potential tight supplies. On the corporate front, debt-ridden French IT group Atos, the cybersecurity and data provider for the Paris Olympics, posted a huge annual loss but vowed that its troubles would not disrupt the Games. The company reported a net loss of 3.4 billion euros ($3.7 billion) for 2023 on asset writedowns and said it was aiming for a debt restructuring by July. Atos shares were down nearly seven percent at 1.60 euros in Paris afternoon trading. Its stock has plummeted from around 15 euros in July last year.
– Key figures around 1330 GMT –
New York – Dow: UP 0.1 percent at 39,366.25 points
New York – S&P 500: UP 0.2 percent at 5,230.25
New York – Nasdaq Composite: UP 0.4 percent at 16,448.81
London – FTSE 100: UP 0.1 percent at 7,927.78
Paris – CAC 40: UP 0.2 percent at 8,168.12
Frankfurt – DAX: UP 0.6 percent at 18,378.13
EURO STOXX 50: UP 0.4 percent at 5,062.29
Tokyo – Nikkei 225: FLAT at 40,398.03 (close)
Hong Kong – Hang Seng Index: UP 0.9 percent at 16,618.32 (close)
Shanghai – Composite: UP 0.2 percent at 3,031.48 (close)
Euro/dollar: UP at $1.0855 from $1.0841
Dollar/yen: DOWN at 151.40 yen from 151.42 yen on Monday
Pound/dollar: UP at $1.2644 from $1.2638
Euro/pound: UP at 85.85 pence from 85.76 pence
Brent North Sea Crude: UP 0.1 percent at $86.84 per barrel
West Texas Intermediate: UP 0.3 percent at $82.19 per barrel
burs-rl/lth
© 2024 AFP
