Global Stocks Gain as China Worries Ease
October 01 2015 - 9:03AM
Dow Jones News
By Tommy Stubbington and Riva Gold
Global stock markets climbed Thursday, extending their rebound
from heavy declines into a second session.
U.S. stock futures indicated a 0.2% opening rise for the S&P
500. Changes in futures aren't necessarily reflected in market
moves after the opening bell.
The Stoxx Europe 600 was up 0.5% early afternoon, as markets
pared earlier gains.
Tentative signs that a slowdown in China's manufacturing sector
may be bottoming out helped shares add to Wednesday's rise, which
came as U.S. and European indexes ended their worst quarter in four
years on a high note.
China's official manufacturing purchasing managers index ticked
up slightly to 49.8 in September, beating expectations. A competing
private gauge of nationwide manufacturing activity, the Caixin
China manufacturing PMI, was down slightly at 47.2 in September, a
six-year low, compared with 47.3 in August.
In the eurozone, manufacturing data showed the pace of expansion
slowed slightly in September.
"Much of the uncertainty is already in the price. Investors are
well aware of the impending economic slowdown," said Jeremy
Batstone-Carr, chief economist and strategist at London-based
brokerage and wealth manager Charles Stanley.
But a disappointing batch of third-quarter corporate earnings
could cause the recent rebound in markets to fade quickly,
according to Mr. Batstone-Carr.
"I'd be concerned about sounding the all clear, particularly as
we head into the reporting season," he said.
Asian markets extended gains after the economic data was
released. Australia's S&P/ASX 200 rose 1.8%.
Japan's benchmark Nikkei Stock Average climbed 1.9%. Investors
in Japan also considered the Bank of Japan's latest corporate
survey, which showed that big manufacturers were more cautious
about the economy in the third quarter as exporters were pressured
by China's slowdown.
Markets in China and Hong Kong were closed for national
holidays.
European shares gave up much of their early gains as commodities
trader and producer Glencore PLC was hit by renewed declines,
having climbed sharply earlier in the session. Glencore shares fell
2.8%.
Meanwhile, investors were looking ahead to Friday's U.S. jobs
report, which is closely watched by Federal Reserve officials as
they decide when to raise short-term interest rates. The Fed's
decision to hold rates at record lows in September helped fuel
fears of slowing global growth.
Economists expect 200,000 jobs were created in September and
estimate that the unemployment rate held at 5.1%.
In currency markets, the euro fell 0.2% against the dollar to
$1.1155. The dollar was 0.1% lower against the yen at
Yen119.75.
In commodities, Brent crude oil was up 0.9% at $49.49 a barrel.
Gold was down 0.2% at $1,113.40 a troy ounce.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
(END) Dow Jones Newswires
October 01, 2015 08:48 ET (12:48 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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