Global Stocks Follow Wall Street Higher01/17 05:54
Global stock markets followed Wall Street higher on Friday after China
reported 6.1% economic growth in 2019 and Washington and Beijing signed an
interim trade agreement.
(AP) -- Global stock markets followed Wall Street higher on Friday after
China reported 6.1% economic growth in 2019 and Washington and Beijing signed
an interim trade agreement.
London and Frankfurt opened higher, while Shanghai, Tokyo and Hong Kong
advanced after the U.S. benchmark S&P 500 index hit a new high and Google
parent Alphabet passed $1 trillion in market value, joining Amazon, Apple and
Microsoft in the $1 trillion club.
China's economic growth was the lowest since 1990 but forecasters pointed to
improved activity in December. They said Wednesday's signing of a truce in the
war over Beijing's technology ambitions and trade surplus might help to revive
consumer and business confidence.
Investors are "finding inspiration" from the Wall Street rally while they
try to figure out "where to from here" in U.S.-Chinese trade relations, said
Jingyi Pan of IG in a report.
"The market sentiment looks to have only improved into the end of the week,"
In early trading, London's FTSE 100 added 0.5% to 7,646.88 and Germany's DAX
gained 0.7% to 13,532.09. France's CAC 40 rose 0.8% to 6,087.69.
On Wall Street, the S&P 500 index future rose 0.2% and that for the Dow
Jones Industrial Average was 0.3% higher. That was after the S&P 500 index
climbed 0.8% on Thursday and the Dow rose 0.9%. The Nasdaq composite gained
Chinese economic growth held steady in the three months ending in December
at the previous quarter's rate of 6% over a year earlier.
Monthly activity indicators showed "industry and investment improved sharply
in December," William Adams of PNC Financial Services Group said in a report.
Forecasters said the U.S.-Chinese trade deal might help to reassure
companies and consumers relations wouldn't deteriorate further. Washington
postponed planned tariff hikes on additional Chinese goods and Beijing promised
to buy more American farm exports.
If the public believes the truce is genuine, "improved sentiment could also
boost economic growth in the near-term," said Adams.
In Asia on Friday, the Shanghai Composite Index rose 1 point to 3,075.50 and
Tokyo's Nikkei 225 gained 0.4% to 24,041.26. Hong Kong's Hang Seng gained 0.6%
Seoul's Kospi added 0.1% to 2,250.57 while Sydney's S&P-ASX 200 gained 0.3%
India's Sensex was 0.1% higher at 41,992.28. New Zealand and Taiwan rose
while Singapore declined.
ENERGY: Benchmark U.S. crude gained 15 cents to $58.67 per barrel in
electronic trading on the New York Mercantile Exchange. The contract rose 71
cents to $58.52 on Thursday. Brent crude, used to price international oils,
rose 22 cents to $64.84 per barrel in London. It rose 62 cents the previous
session to $64.62.
CURRENCY: The dollar advanced to 110.21 yen from Thursday's 110.13 yen. The
euro edged up to $1.1140 from $1.1136.