European Stocks Buoyed by Banks -- Update
May 10 2016 - 6:02AM
Dow Jones News
By Riva Gold
Bank stocks led gains in global markets Tuesday as investors
parsed a fresh round of corporate earnings reports.
The Stoxx Europe 600 was up 1.4% in morning trade, led by the
financial sector.
Shares in Credit Suisse Group rose over 5% after the lender
announced its first-quarter results. While it swung to its second
consecutive quarterly loss, its wealth management business turned
in better numbers than expected, encouraging investors.
Dutch bank ING Groep NV also gained over 5% after it reported
first-quarter figures, even as higher regulatory costs weighed on
profits.
Futures pointed to a 0.7% opening gain for the S&P 500.
Changes in futures don't necessarily reflect market moves after the
opening bell.
Stocks in Europe and the U.S. have traded within a narrow range
in recent weeks, as investors struggle to reconcile a recent
rebound in equity prices with a lackluster earnings season and
concerns about the health of the global economy.
"The market is having a real hard time moving higher," said
David Lafferty, chief market strategist at Natixis Global Asset
Management.
"I see OK earnings and OK valuations, but nothing in a world of
uncertainty that's making investors want to pay up for stocks," he
said.
Earlier, markets in Japan led gains in Asia after the country's
finance minister said it was "natural" for the government to
intervene should the yen continue to rise in a one-sided way. The
dollar was last up 0.6% against the yen at Yen109.0040, offering
some respite for investors as a stronger yen puts pressure on
Japan's exporters.
Stocks in Hong Kong and Shanghai were little changed after data
showed China's inflation rate was steady for a third straight
month, though producer prices beat expectations.
Australian equities rose for a fourth straight session, as the
country's four biggest banks added almost 22 points to the S&P/
ASX 200. The gains outweighed losses in commodity-sensitive stocks
as iron-ore prices continued to fall.
In other commodities, Brent crude oil was down for most of the
Asian session, but erased earlier losses to trade up 1.4% at $44.23
a barrel.
Gold was up 0.1% at $1,267.60 an ounce.
John Letzing contributed to this article
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
May 10, 2016 05:47 ET (09:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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