Global Stocks Regain Ground
26 Marzo 2019 - 12:15PM
Dow Jones News
By David Hodari
Global stocks ticked up Tuesday, extending a moderate rebound
after a sharp selloff late last week.
The Stoxx Europe 600 was up 0.3% in midmorning trading, with the
index's energy sector posting a 0.7% rise. Oil prices have recently
recovered following a difficult start to the year, with Brent crude
oil futures, the global benchmark, last up 0.7% at $67.28 a
barrel.
U.S. futures put the S&P 500 and the Dow Jones Industrial
Average on course to climb 0.3% at the open after both indexes eked
out gains on Monday. The S&P remained 1.2% below its level a
week earlier.
Investors and strategists have recently signaled doubts over the
prospects for global growth amid a raft of downbeat economic
data.
Germany's DAX index underperformed other European benchmarks,
falling 0.1% after a German consumer confidence survey undershot
forecasts. That chimed with similarly downbeat eurozone purchasing
managers index figures at the end of last week.
The yield on 10-year German government bonds slipped below its
late Monday level, to minus 0.028%. Yields fall as prices rise.
Meanwhile, the yield on 10-year U.S. Treasurys was last 2.440%,
up from 2.418% late Monday and on course to snap a four-day
negative streak. A recent slip in 10-year U.S. Treasury yields
below the level of three-month Treasury bills has been seen by some
investors as foreshadowing a potential U.S. economic downturn.
With the first quarter ending later this week, investors are
looking ahead to the next three months.
"It's been a good quarter for equities, fixed income and credit,
which really raises the bar to repeat that kind of performance in
the second quarter and brings us back to the point that equities
and fixed income rallying does not, in principle, make sense if the
global economy is slowing," said Kenneth Broux, senior strategist
at Société Générale.
French GDP figures on Tuesday matched market expectations.
Growth figures from the U.S. are due Thursday, and from the U.K.,
Spain and Canada on Friday.
U.K. assets remained little changed despite lawmakers' decision
late Monday to wrest control of the Brexit process away from Prime
Minister Theresa May, in a move that will prompt a series of
indicative votes this week aimed at easing legislative gridlock.
The FTSE 100 was up 0.3% and the pound was nearly flat against the
dollar at $1.3212.
The gains in Europe followed more mixed trading in Asia. Japan's
Nikkei 225 climbed 2.2% thanks to buoyant pharmaceuticals and
transportation stocks, while shares in Nintendo jumped 4.8% after
the company announced plans to launch two new versions of its
Switch console.
South Korea's Kospi benchmark rose 0.2%, with index heavyweight
Samsung Electronics down 0.6% after warning of a hit to earnings
from weak chip prices.
Mainland China stocks fell ahead of the resumption of
cabinet-level trade negotiations between the U.S. and China. The
Shanghai Composite Index fell 1.5% and the Shenzhen A-Share dropped
2.2%, though those benchmarks tend to be more volatile than many of
their Asian counterparts. Hong Kong's Hang Seng gained 0.2%.
Investors were hopeful that monthslong negotiations would
finally yield results. "We assign a 60% chance to a successful
outcome to talks, which would involve a partial rollback of
tariffs," said UBS strategists in a note.
Traders were also eyeing speeches from China's finance minister
and central bank governor, both expected this week, and U.S.
house-building figures due later in the day.
U.S. technology sector stocks will be in focus on Tuesday, with
Uber completing the $3.1 billion purchase of Middle Eastern rival
Careem Networks, and Apple on Monday announcing a raft of products
aimed at boosting its services revenues.
Write to David Hodari at David.Hodari@dowjones.com
(END) Dow Jones Newswires
March 26, 2019 07:00 ET (11:00 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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