Global stocks edge up after US data
The Associated Press (AP)
LONDON (AP) — Global stocks edged higher on Tuesday after upbeat U.S. economic data and as investors were heartened by the S&P 500's foray to record highs.
KEEPING SCORE: By early afternoon in Europe, Germany's DAX was up 0.2 percent at 9,526.71 and France's CAC-40 was up 0.6 percent at 4,367.54. Britain's FTSE 100 added 0.4 percent to 6,801.34 after being closed Monday for a public holiday. Wall Street was expected to open higher, with Dow and Standard & Poor's 500 futures up 0.1 percent. On Monday, the S&P briefly rose past the 2,000-point mark and closed at a second record high in a week.
HIGHER ORDERS: Trading sentiment was buoyed further on Tuesday by figures showing orders of durable manufactured goods surged by a record 22.6 percent in July on the back of a jump in aircraft sales. Looking ahead, investors will keep an eye on official U.S. economic growth figures due Thursday.
ANALYST TAKE: Experts said the durable goods figures are a definite positive, even though demand for items outside transportation was not as strong. "With some producers starting to push up against capacity constraints and loans to businesses rising at a rapid rate, we suspect that investment will prove to be one of the economy's bright spots in the second half of this year," said Paul Dales, senior U.S. economist at Capital Economics.
STIMULUS HOPES: Stocks have also been boosted by reassurances by Europe's and Japan's top central bankers that they will continue to provide stimulus. European Central Bank President Mario Draghi's hint that the bank could pursue a more aggressive program of bond purchases pushed stocks up this week and caused government bond yields to drop to record lows. The U.S. dollar, meanwhile, has risen against major currencies since Federal Reserve chair Janet Yellen hinted the Fed is inching toward interest rate hikes because of faster-than-expected improvement in employment.
ASIA'S DAY: China's Shanghai Composite Index declined 1 percent to 2,207.11 while Tokyo's Nikkei 225 shed 0.6 percent to 15,521.22. Hong Kong's Hang Seng declined 0.4 percent to 25,074.50 and India's Sensex was off 0.4 percent at 26,340.20. Singapore and Jakarta declined while Seoul and Sydney gained.
ENERGY: Benchmark U.S. crude for October delivery was up 30 cents to $93.65 in electronic trading on the New York Mercantile Exchange. The contract declined 30 cents on Monday to close at $93.35.
CURRENCIES: Major currencies stabilized after losing ground to the dollar. The euro rose to $1.3204 from the previous session's $1.3181. The dollar declined to 103.88 yen from Monday's close of 104.09 yen.