Global equities profit from US earnings season | Fin24
 
  • Mboweni on State Capture

    The new finance minister has described state capture as a 'great public sector heist'

  • Kganyago on Populism

    The central bank head says SA must learn economic lessons from Venezuela and Zimbabwe.

  • Up in the Air

    Uber Air could see SA shoppers flying to malls via skyports, says a company executive.

Loading...

Global equities profit from US earnings season

Aug 07 2018 15:15

Asian and European stocks rose on Tuesday, mirroring Wall Street on the back of a solid second-quarter US results season.

Healthy corporate earnings have supported global equities in recent weeks, although gains have been limited by continuing concerns about the simmering trade war between China and the US.

In late morning deals, Frankfurt stocks added 0.9%, London won 0.6% and Paris put on 0.7% in value.

Most major Asian markets also rose after another positive Wall Street lead, with energy firms surging along with oil prices.

Energy firms also rallied on rebounding oil prices after US President Donald Trump re-imposed stiff sanctions on major crude producer Iran.

"UK and European markets have rallied ... carrying the baton over from last night's better showing for US markets," said IG analyst Chris Beauchamp.

"Confidence has returned as the S&P 500 moseys its way to towards the January record high, and it remains encouraging to see stock markets hold their ground despite a drumbeat of trade war headlines of late."

'Rising tide lifts all boats'

"Earnings season is shaping up very well indeed, which accounts for why US equities remain comfortably ahead of the likes of Europe, but a rising tide lifts all boats and will reinforce the impression that this economic recovery and its associated bull market has further to run," added Beauchamp.

Analysts cited the strong second-quarter earnings season as a supporting factor for stocks, with S&P 500 companies so far reporting 24% higher profits compared with the year-ago period.

And US companies could authorize as much as $1trn in share buybacks this year following that surge, according to a note from Goldman Sachs.

As investors awaited the next chapter in the long-running trade tariffs dispute, they moved in to pick up cheaper stocks in Asia, too.

Hong Kong was up 1.5% as it built on Monday's gains. Shanghai surged to close 2.7% higher, day after hitting a near two-and-a-half-year low. Tokyo jumped 0.7% and Singapore 1.8%.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter and Facebook. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

equities  |  markets  |  global markets
NEXT ON FIN24X

 
 
 
 

Company Snapshot

#MINIBUDGET2018

All eyes are on newly appointed Finance Minister Tito Mboweni as he readies to deliver his maiden mini budget speech amid an ailing economy and eroded confidence.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The Data Market Inquiry:

Previous results · Suggest a vote

Loading...