Global equities extend rally on strong corporate earnings
Sentiment remains bullish on world stock markets – Copyright AFP / File Hector RETAMAL
Global stocks rose on Friday, driven by strong US corporate earnings, while Brent oil hit its highest level in three years on strong demand from reopening economies.
After Asian and European stocks advanced earlier in the day on the basis of better-than-expected US economic data, Wall Street continued its momentum, opening with a gain of 0.6%.
In Europe, London’s FTSE was up 0.3% by mid-afternoon, Frankfurt DAX 0.6% and Paris CAC 40 was up 0.5%.
“The way the results season has unfolded in the US… has set a very positive tone so far,” said AvaTrade analyst Naeem Aslam. “We have seen some really healthy numbers in the US banking sector this week.”
Goldman Sachs reported higher third-quarter profits on Friday, behind strong gains in its financial advisory and trading divisions, ending a strong week of results for major US banks.
– Brent oil exceeds $ 85 –
Brent crude from the North Sea climbed to $ 85.10 a barrel, a level last seen in October 2018, with the International Energy Agency raising its demand forecast as shortages of coal and gasoline. gas triggered a switch to oil.
This boosted London’s FTSE 100 index, which briefly hit its highest level since before the deadly Covid-19 pandemic.
“While this is an encouraging sign for the UK economy, it remains to be seen whether the index will be able to hold onto these gains or whether it will decline again, as growing concerns about the inflation and uncertainty over monetary policy could impact investors’ confidence in the future, ”said Walid Koudmani, analyst at XTB online trading.
Central banks around the world are preparing to begin – or in some cases have started – scaling back the sweeping financial support put in place at the start of the pandemic, which helped economies rebound and pushed stocks to record or multi-year highs .
Soaring prices, supply chain grunts and an emerging energy crisis caused by the reopening of closures have put increasing pressure on CFOs to act sooner than they expected to. prevent inflation from spiraling out of control.
– The US economy on the right track –
The US economy appears to be on the right track, new data showed on Friday, with consumers increasing spending in September and retail sales registering a surprise 0.7% increase, driven by large gains going beyond l gasoline and automobiles.
Earlier in Asia, Tokyo closed up 1.8% and Taipei more than 2%. Shanghai, Sydney, Seoul, Singapore and Manila also advanced.
Hong Kong jumped 1.5%, after reopening after two days off, although Jakarta, Bangkok and Wellington plunged.
Expectations of a tightening of US monetary policy pushed the dollar above 114 yen for the first time since late 2018.
Bitcoin, meanwhile, tested the $ 60,000 mark for the first time since May after a report said the United States Securities and Exchange Commission was set to approve the first exchange-traded fund. eventually for unity.
“This is a key development for the crypto space as it would allow many investors who were about to enter the market in a more traditional way,” Koudmani said.
– Key figures around 13:45 GMT –
New York – Dow: UP 0.6% to 35,124.93 points
London – FTSE 100: Up 0.3% to 7,230.00
Frankfurt – DAX: + 0.6% to 15,556.25
Paris – CAC 40: + 0.5% to 6,721.75
EURO STOXX 50: UP 0.6% to 4,173.96
Tokyo – Nikkei 225: + 1.8% to 29,068.63 (closing)
Hong Kong – Hang Seng Index: EN up 1.5% to 25,330.96 (close)
Shanghai – Composite: EN up 0.4% to 3,572.37 (close)
Euro / dollar: Up to $ 1.1602 from $ 1.1597 at 9:00 p.m. GMT
Pound / dollar: At $ 1.3745 vs. $ 1.3673
Euro / pound: DROP to 84.41 against 84.82 pence
Dollar / yen: up to 114.40 yen from 113.68 yen
North Sea Brent: UP 1.0% to $ 84.81 per barrel
West Texas Intermediate: EN up 1.0% to $ 82.15 per barrel
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