World Stocks Power Higher As Trade Fears Ease
Fahad Shabbir (@FahadShabbir) Published April 06, 2018 | 08:30 AM
New York, April 6 (APP - UrduPoint / Pakistan Point News - 6th Apr, 2018 ) :Global stocks rocketed higher on Thursday as investors judged recent trade war fears may be overblown. "Buyers came back with a vengeance," said Jasper Lawler, at London Capital Group.
In Europe, Frankfurt's DAX 30 index jumped 2.9 percent higher with the CAC 40 in Paris following close behind with a 2.6 percent gain. London climbed 2.4 percent, with telecom shares advancing after strong bidding for frequencies for the next generation of mobile phone technology.
Meanwhile, Wall Street stocks moved higher for the third straight session. The broad-based S&P 500 finished 0.7 percent higher, while the Dollar also strengthened ahead of Friday's closely-watched Department of Labor jobs report for March.
- Trade compromise ahead? - Tokyo led the gainers in Asia, climbing a solid 1.5 percent as the more positive market sentiment reduced demand for the haven yen, pushing the Currency down. Hong Kong and Shanghai were closed for holidays.
"Investors are expressing confidence that a solution will be found before a full-blown trade war erupts," said Craig Erlam, senior analyst at trading firm Oanda. However, he also sounded a note of caution over the lingering market concerns.
"The reality is that a trade war remains a real possibility," warned Erlam. "US President Donald Trump is looking to pick a fight with the world's second largest economy, a fight he believes is easy to win, and China is willing to go toe-to-toe with the United States -- even if it means inflicting harm at home." The more bullish outlook for stocks came on the heels of a see-saw session on Wall Street on Wednesday that saw equities rally impressively into the close.
Traders have been spooked by tit-for-tat accusations and measures between China and the United States that some fear could lead to a full-blown trade war between the world's top two economies. China unveiled plans on Wednesday to hit major US exports in retaliation for US tariff plans detailed the day before.
Threats are "what seems to be (Trump's) normal negotiating strategy," said Maris Ogg of Tower Bridge Advisors. "It seems to be really unlikely that all this negative trade talk is going to really amount to much." Ogg also pointed to hopes the upcoming first-quarter earnings period would be strong.
Companies in the S&P 500 are expected to average earnings growth of 17.3 percent, according to FactSet. - Key figures around 2100 GMT - New York - Dow: UP 1.0 percent at 24,505.22 (close) New York - S&P 500: UP 0.7 percent at 2,662.84 (close) New York - Nasdaq: UP 0.5 percent at 7,076.55 (close) London - FTSE 100: UP 2.4 percent at 7,199.50 (close) Frankfurt - DAX 30: UP 2.9 percent at 12,305.19 (close) Paris - CAC 40: UP 2.6 percent at 5,276.67 (close) EURO STOXX 50: UP 2.8 percent at 3,433.30 (close) Tokyo - Nikkei 225: UP 1.5 percent at 21,646.42 (close) Euro/dollar: DOWN at $1.2240 from $1.2278 at 2100 GMT Wednesday Dollar/yen: UP at 107.38 Yen from 106.78 Pound/dollar: DOWN at $1.4005 from $1.4079 Oil - Brent North Sea: UP 39 cents at $68.41 per barrel Oil - West Texas Intermediate: UP 28 cents at $63.65 per barrel
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