Global Stocks Gain on U.S. Moves on Trade
July 23 2019 - 6:25AM
Dow Jones News
By Anna Isaac
-- Stoxx Europe 600 gains 0.6%
-- U.S. 10-year Treasury yields tick higher
-- Asian indexes broadly rise
Global stocks climbed after the U.S. moved to rekindle stalled
trade talks with China.
President Trump met with major technology companies at the White
House on Monday to discuss restrictions on Chinese telecom giant
Huawei, a move seen as a step toward softening the U.S. stance on
the blacklisted firm.
In Europe, shares of trade-sensitive auto-related companies led
gains. Faurecia SA, an auto parts maker, had the biggest gain in
the region at 9.2%, after posting better-than-expected results in
its Chinese and South American operations, according to UBS.
Daimler AG rose 3.8%, after it said that China's state-owned
Beijing Automotive Group Co. had taken roughly 5% stake in the
company.
Technology firm Logitech International climbed 7.1% after it
said it was on track to meet its 2020 sales and revenue targets.
Semiconductor and other technology suppliers saw strong gains on
Monday on signs of strengthening demand.
The positive mood in markets was gaining support both from both
central banks and cooling trade tensions, said Thushka Maharaj,
global strategist at J.P. Morgan Asset Management. Analysts expect
a cut to interest rates from the Federal Reserve next week, and
evidence of more stimulus from the European Central Bank on
Thursday.
Still, a "sustained rally" across assets would require an
improvement in underlying economic indicators, most particularly
"manufacturing data across Europe and Asia," Ms. Maharaj said.
Shares in Spanish lender Banco Santander SA and Swiss bank UBS
Group AG both rose more than 2% following their earnings reports.
UBS's profit came in well ahead of expectations, and while
Santander reported a tumble in net profit of 18% after costly
restructuring efforts, this was largely in line with analysts'
forecasts.
In the U.K., markets were awaiting the victor in the
Conservative competition to be the new prime minister, expected
shortly before noon local time.
The expectation is for Boris Johnson, the former foreign
secretary and a leading voice of the campaign to leave the EU, to
take the helm.
Derek Halpenny of MUFG Bank Ltd. said that unless there were
signs that support was ebbing away from Mr. Johnson, in the form of
further cabinet resignations or parliamentary party defections,
there would "not be much in terms of volatility in equities,
currencies or bonds."
Wall Street was set for another crop of results from major
corporations. Coca-Cola Company will report on earnings later
Tuesday, along with Travelers Companies and Visa.
Separately, Congress struck a deal late Monday with the White
House over spending, which would suspend the federal debt ceiling
until the end of July 2021. The move effectively took the matter
off the table until after the next presidential election.
Asian markets also were up, with Shanghai up 0.5%, Hong Kong's
Hang Seng up 0.3% and Japan's Nikkei up 1%.
(END) Dow Jones Newswires
July 23, 2019 06:10 ET (10:10 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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