Publications
Partners
Sydney - European stocks headed for the first gain in three days, spurred by raw-material producers on optimism the global economy is gathering momentum. Industrial metals including copper climbed after manufacturing data from China showed another expansion.
Anglo American, Rio Tinto and BHP Billiton helped underpin the advance in the Stoxx Euro 600 Index as miners also propelled the MSCI All Country World Index toward a ninth month of gains. HSBC stoked lenders after reporting earnings that beat estimates. West Texas crude briefly traded above $50 a barrel for the first time since May, while copper rose to a two-year high and iron ore surged.
Stocks are rebounding from Friday’s selloff as evidence points to resilient global growth, with investors assessing numbers 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 data 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.”
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 and Sony among the stand out names alongside the likes of Berkshire Hathaway, Tesla, Pfizer and Heineken.
• The US Energy Information Administration releases monthly reports on Monday.
Here are some of the key moves in markets:
Stocks
• The Stoxx Europe 600 Index climbed 0.1% as of 11:17, with basic resources rising 1.4%.
• Futures on the S&P 500 Index gained less than 0.1%.
• The MSCI All-Country World Index advanced 0.1%.
• The UK’s FTSE 100 Index jumped 0.4%.
• The MSCI Emerging Market Index increased 0.3%.
Currencies
• The Bloomberg Dollar Spot Index climbed 0.1%.
• The euro fell 0.1% to $1.174.
• The British pound dipped 0.2% to $1.3111.
Bonds
• The yield on 10-year Treasuries advanced less than one basis point to 2.29%.
• Germany’s 10-year yield climbed one basis point. Britain’s 10-year yield fell less than one basis point.
Commodities
• Copper climbed 1.1% to $2.91 a pound, the highest in more than two years.
• Zinc gained 1.1%, nickel 0.7% and tin 1%.
• Gold fell 0.2% to $1 266.98 an ounce.
Asia
• The yen was little changed at 110.64 per dollar, still set for the biggest monthly gain since January.
• 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.
SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
