Global equities rebound on upbeat US reports

Dmitry Lukashov IFC Markets

US stocks bounce back on upbeat quarterly reports

US stocks ended sharply higher on Tuesday on upbeat earnings and data as technology shares led the recovery. The S&P 500 rallied 2.2% to 2809.92. Dow Jones industrial average climbed 2.2% to 25798.42 led by Goldman Sachs and United Health which reported better than expected results for third quarter earnings. The Nasdaq composite index jumped 2.9% to 7645.49. The dollar strengthening resumed as the 0.3% rise in industrial production in September beat expectations of 0.2%: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, edged up 0.04% to 95.065 and is higher currently. Futures on stock indices point to mixed openings today.

European indices open higher

European stocks extended gains on Tuesday despite mixed data. The EUR/USD turned lower as Italy’s government late Monday approved a draft budget law for 2019 which plans to raise budget deficit to 2.4% of gross domestic product or higher. The GBP/USD turned higher on report UK wage growth accelerated over the summer at the fastest pace in almost a decade. Both pairs are lower currently. The Stoxx Europe 600 rose 1.6%. The German DAX 30 advanced 1.4% to 11776.55. France’s CAC 40 jumped 1.5% and UK’s FTSE 100 gained 0.4% to 7059.40. Markets opened 0.3% - 0.4% higher today.

NIKKEI still best performer among Asian indices

Asian stock indices are advancing today as investors confidence was buoyed by rebound on Wall Street overnight. Nikkeiended 1.3% higher at 22841.12 with yen little changed against the dollar. Chinese stocks are higher: the Shanghai Composite Index is up 0.6% and Hong Kong’s Hang Seng index is 0.1% higher. Australia’s All Ordinaries Index extended gains 1.2% as Australian dollar continued slide against the greenback.

Brent up

Brent futures prices is rebounding today on expectations of a fall in US crude inventories. The American Petroleum Institute reported late Tuesday that US crude inventories fell by 2.1 million barrels last week. Prices advanced yesterday: December Brent rose 0.8% to $81.41 a barrel Tuesday. Today at 16:30 CET the Energy Information Administration will release US Crude Oil Inventories.

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Author

Dmitry Lukashov

IFC Markets

Dimtry Lukashov is the senior analyst of IFC Markets. He started his professional career in the financial market as a trader interested in stocks and obligations.

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