Stocks Ride Fed Rate Cut Hint Higher
Stock markets rose Friday, after Federal Reserve chief Jerome Powell all but flicked the switch on a US interest rate cut at the end of the month
After big losses at the start of the week, trading floors have been much more upbeat since a two-day congressional testimony in which Powell hinted at a possible reduction in borrowing costs, with markets now betting on the size of the anticipated cut.
US stocks continued to rally on Friday at the opening bell, with the Dow adding 0.3 percent.
Further stock market gains came despite unease caused by US President Donald Trump accusing China of backsliding on a trade promise -- just days after the two sides tentatively began telephone talks on resolving their tariffs war.
Meanwhile, China's economy grew at its slowest rate in nearly three decades in the second quarter, hit by the US-China trade war and weakening global demand, according to an AFP survey of analysts.
The world's second largest economy expanded 6.2 percent in April-June, the poll of 10 economists estimated, ahead of the official release of gross domestic product figures Monday.
- Oil prices rise - Elsewhere, geopolitical tensions after armed Iranian boats threatened a British oil tanker earlier in the week provided support for oil prices, although gains were limited by longer-term oversupply concerns.
"That being said, in the absence of such shocks, US production is likely to remain a drag on prices.
" Iran's Revolutionary Guards denied involvement in the British Heritage incident but said the United States and Britain would "strongly regret" British detention of the fully-loaded Iranian tanker off Gibraltar for violating sanctions on Syria, allegedly the planned recipient of its cargo.
Britain said Friday it will send a second warship to the Gulf, while the Pentagon said Thursday it was discussing military escorts for vessels in the Gulf.
"The widely-anticipated decision by OPEC+ ministers to extend their output agreement to March 2020 provides guidance but it does not change the fundamental outlook of an oversupplied market," the International Energy Agency said in its latest monthly report.
At a meeting two weeks ago in Vienna, OPEC countries and other oil producers such as Russia agreed to prolong by nine months daily output cuts aimed at supporting prices and soaking up excess supplies.
But supply is currently well in excess of demand, said the Paris-based institution that provides advice to oil-consuming nations.
- Key figures around 1330 GMT - London - FTSE 100: UP less than 0.1 percent at 7,514.59 points Paris - CAC 40: UP 0.5 percent at 5,578.83 Frankfurt - DAX 30: UP 0.1 percent at 12,344.63 EURO STOXX 50: UP 0.2 percent at 3,503.04 New York - Dow: UP 0.3 percent at 27,173.64 Tokyo - Nikkei 225: UP 0.2 percent at 21,685.90 (close) Hong Kong - Hang Seng: UP 0.1 percent at 28,471.62 (close) Shanghai - Composite: UP 0.4 percent at 6,696.50 (close) Euro/dollar: DOWN at $1.1242 from $1.1255 at 2130 GMT Pound/dollar: UP at $1.2538 from $1.2526 Dollar/yen: DOWN at 108.14 Yen from 108.45 yenBrent North Sea crude: UP 37 cents at $66.89 per barrelWest Texas Intermediate: UP 10 cents at $60.30 per barrel