Global Stocks Rise After Wall Street Hits New Highs
September 21 2018 - 4:49AM
Dow Jones News
By Georgi Kantchev
Global stocks extended their gains Friday, capping a week where
investors looked past international trade tensions and bet that a
strengthening U.S. economy could keep the rally intact.
Taking their lead from Wall Street's record close on Thursday,
stock markets from China to Germany were poised for strong weekly
gains. The Stoxx Europe 600 was up 0.7% in early morning trade, led
by gains in the automotive and resources sectors. Asian markets
rallied across the board.
In the U.S., futures pointed to a 0.2% opening gain for the
S&P 500 and 0.3% rise for the Dow Jones Industrial Average
after both indexes set new highs in the previous session. It was
the S&P 500's 19th record close this year.
The gains come as investors this week mostly shrugged off the
imposition of new tariffs in the continuing trade spat between the
U.S. and China. Market participants instead focused on the strong
fundamental outlook, including solid corporate earnings and a
robust U.S. economy, which is growing at its fastest rate since
2014.
"Risk is having a great time at the moment," said Jim Reid, an
analyst at Deutsche Bank, in a note to clients.
Underscoring the robust economic outlook, Labor Department data
on Thursday showed that initial jobless claims, a proxy for layoffs
across the U.S., fell to the lowest level since 1969.
"The broader picture is clear: the U.S. economy is doing very
well," said Eric Stein, co-director of global income at
Boston-based Eaton Vance. "At some point you start to wonder if
this is as good as it gets. But we are not there yet."
Investors were also looking to next week's Federal Reserve
meeting. Most watchers are expecting the U.S. central bank to raise
interest rates.
The 10-year U.S. Treasury yield fell slightly to 3.072%,
compared with 3.076% on Thursday. Yields move inversely to
prices.
The WSJ Dollar Index, which tracks the dollar against a basket
of 16 currencies, was up 0.1%.
In Asia, Chinese equities led the way, with the Shanghai
Composite closing up 2.5%, its biggest gain in six weeks. Japan's
Nikkei Stock Average rose 0.8% while Hong Kong's Hang Seng was up
1.6%.
In commodities, Brent crude, the global oil price benchmark, was
up 0.2% while gold was up 0.1%.
Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
September 21, 2018 04:34 ET (08:34 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.