3 weeks ago
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Most major global stock markets rose on Tuesday as investors looked ahead to the release of US economic data and the earnings reports of tech giants this week.
Oil prices rebounded after a sharp fall the previous day, following relief that Israel’s strikes on Iran spared the country’s energy infrastructure.
Concerns in the oil market have now shifted back to potential oversupply in 2025 and a slowdown in demand from China, the world’s largest oil importer, according to analysts.
US stocks closed higher on Monday, buoyed by lower oil prices, as investors anticipate a busy week of economic indicators, with the market already hovering near record highs.
The US government will release its third-quarter GDP growth estimate this week, along with the closely watched monthly labour market report, which will shed light on the health of the world’s largest economy.
Investors are also eyeing the earnings reports of five of the “Magnificent Seven” US tech giants due this week, including Alphabet, Amazon, Apple, Meta, and Microsoft.
“Although any market focus on earnings will soon shift to next week’s presidential election and Federal Reserve meeting,” said Danni Hewson, head of financial analysis at AJ Bell.
Major European stock markets were in the green in late morning trading, while Asian markets ended mixed.
London edged up around 0.1 per cent as investors awaited Britain’s new Labour government’s first budget on Wednesday, expected to include business tax rises.
Shares in banking giant HSBC rose around four per cent, leading gains on London’s FTSE 100 after the bank reported strong earnings that beat profit expectations.
Meanwhile, shares in British oil and gas giant BP dropped by one per cent after the company reported a decline in profits due to weak oil trading and refining margins, despite surpassing analyst expectations.
In Asia, Tokyo and Hong Kong stocks climbed, while Shanghai and Singapore retreated.
Japanese shares built on the previous day’s gains as lower oil prices and a weaker yen outweighed uncertainty after Japan’s ruling coalition fell short of a majority in Sunday’s general election.
Investors are awaiting the Bank of Japan’s rate decision later this week, with the central bank expected to hold rates steady after two hikes earlier this year.
Attention is also on a key political meeting in Beijing next week, with investors hoping for details of a major stimulus plan to support China’s struggling economy.
The People’s Bank of China on Monday introduced a new lending tool to inject liquidity into the market.
“Beijing hopes this tool will boost market sentiment,” said Stephen Innes, analyst at SPI Asset Management.
“China’s economic engine has been stalling with soft demand and tepid growth data, and with the potential impact of the US election looming large, financial market stability is critical for Beijing,” he added.
Key Figures around 10:50 GMT
London – FTSE 100: UP 0.1 per cent at 8,296.06 points
Paris – CAC 40: UP 0.5 per cent at 7,593.27
Frankfurt – DAX: UP 0.4 per cent at 19,599.06
Tokyo – Nikkei 225: UP 0.8 per cent at 38,903.68 (close)
Hong Kong – Hang Seng Index: UP 0.5 per cent at 20,701.14 (close)
Shanghai – Composite: DOWN 1.1 per cent at 3,286.41 (close)
New York – Dow: UP 0.7 per cent at 42,387.57 (close)
Currencies
Euro/dollar: DOWN at $1.0808 from $1.0815 on Monday
Pound/dollar: UP at $1.2983 from $1.2972
Dollar/yen: UP at 153.37 yen from 153.24 yen
Euro/pound: DOWN at 83.27 pence from 83.37 pence
Oil Prices
Brent North Sea Crude: UP 1.0 per cent at $71.70 per barrel
West Texas Intermediate: UP 1.1 per cent at $68.06 per barrel
