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New York - US stocks rose toward all-time highs as corporate earnings and deals boosted confidence in the global economy. The dollar gained, paring its worst monthly decline since January.
The S&P 500 Index pushed toward a record amid Discovery Communications’s deal to buy Scripps Networks Interactive Inc. Miners bolstered European shares as copper rose to a two-year high and iron ore surged. HSBC stoked lenders after reporting earnings that beat estimates. West Texas crude fell back after briefly trading above $50 a barrel for the first time since May.
Stocks are rebounding from Friday’s selloff as evidence points to resilient global growth, with investors assessing data from the world’s top three economies.
China’s official factory gauge showed continued expansion in June, even as it slipped amid government efforts to curb financial risks. Japan’s industrial output expanded in June, while numbers on Friday showed the US economy accelerating in the second quarter.
“Global expansion dynamics are well underway,” analysts at Candriam Investors Group wrote in a report.
“The European recovery is well on track and is leading to above-trend growth in 2017 to 2018. This has led us to increase our profit earnings expectations for eurozone equities. The economic news flow is starting to become more supportive in the US, while emerging markets are benefiting from a good economic momentum.”
Meanwhile, the slew of corporate earnings continues. Apple, Tesla, Berkshire Hathaway and Toyota are all set to unveil results this week. HSBC’s second-quarter profit beat analysts’ estimates as outgoing CEO Stuart Gulliver boosted revenue while also trimming costs, and the lender said it will spend up to $2bn buying back stock.
In a packed week, here are some of the key events:
• There’s a stack of data on the US economy due this week; highlights include jobs data that probably shows employers added about 180 000 workers in July. That’s Friday. Also watch out for manufacturing and automaker data on Tuesday.
• Brazil’s Congress votes on whether to put President Michel Temer on trial on Wednesday.
• The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25%.
• Australia (Tuesday), India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday) also announce rate decisions.
• The flood of earnings continues, with tech giants Apple Inc. and Sony Corp. among the stand out names alongside the likes of Berkshire Hathaway, Tesla and Pfizer.
• The US Energy Information Administration releases monthly reports on Monday.
Here are some of the key moves in markets:
Stocks
• The S&P 500 gained 0.2% at 15:33.
• The Stoxx Europe 600 Index jumped 0.4%.
• Basic resources climbed 1.1%.
• The MSCI All-Country World Index advanced 0.1%.
• The UK’s FTSE 100 Index increased 0.4%.
• The MSCI Emerging Market Index climbed 0.3%.
Currencies
• The Bloomberg Dollar Spot Index advanced 0.2%, paring its fifth straight monthly drop to 2.1%.
• The euro decreased 0.2% to $1.1731.
• The British pound declined 0.1% to $1.3119.
Bonds
• The yield on 10-year Treasuries declined less than one basis point to 2.30%.
• Germany’s 10-year yield climbed two basis points. Britain’s 10-year yield decreased one basis point.
Commodities
• West Texas Intermediate crude fell 0.6% to $49.46 a barrel, the first retreat in more than a week.
• Copper climbed 0.7% to $2.90 a pound, the highest in more than two years.
• Gold declined 0.1% to $1 268.55 an ounce.
Asia
• The Japanese yen increased 0.1% to ¥110.58/$, the strongest in six weeks.
• Japan’s Topix index closed 0.2% lower after swinging between gains and losses.
• Australia’s S&P/ASX 200 Index rose 0.3% and South Korea’s Kospi index added 0.1%.
• Hong Kong’s Hang Seng Index added 1.1%.
• HSBC was among the biggest contributors to the advance.
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