Global stocks higher as investors shrug off Korea tensions
Global stocks higher as investors shrug off Korea tensions
The Associated Press
Updated 7:35 am, Wednesday, August 30, two thousand seventeen
LONDON (AP) – Global stocks recovered their poise Wednesday, a day after concerns over North Korea’s latest missile test, which flew over northern Japan, had stoked another bout of risk aversion across financial markets. With geopolitical concerns set aside, investors can now concentrate on a raft of economic data over the rest of the week.
KEEPING SCORE: In Europe, the FTSE one hundred index of leading British shares was up 0.Four percent at 7,365 while Germany’s DAX rose 0.Five percent to 12,000. France’s CAC forty was 0.Five percent higher at 11,999. U.S. stocks were poised for a stable opening after turning around Tuesday, with Dow futures and the broader S&P five hundred futures up 0.1 percent.
NORTH KOREA: The recovery in stock markets, as well as the modest fall in the value of gold, suggests that investor fears over the developments in North Korea have abated somewhat. The country’s leader, Kim Jong Un, has called for more weapons launches targeting the Pacific Ocean to advance his country’s capability to contain Guam. U.S. President Donald Trump said North Korea had signaled its “contempt for its neighbors” and that “all options are on the table” in terms of a U.S. response. The U.N. Security Council strongly condemned the launch.
ANALYST TAKE: “Thoughts of nuclear apocalypse emerge far from everyone’s minds this morning, as markets rebound from yesterday’s lows,” said Chris Beauchamp, market analyst at IG. “Once again U.S. markets put the bears back in their box, rallying in fine style off the lows.”
Concentrate ON DATA: Over the rest of the week, investors can concentrate on the economic fundamentals, embarking Wednesday with the latest update on U.S. growth and the monthly private payrolls report from ADP. The big event tho’ is likely to be Friday’s U.S. nonfarm payrolls report for August which could determine the rhythm of rate hikes from the Federal Reserve this year. On Thursday, there’s also crucial inflation data for the 19-country eurozone, which could have an influence on market expectations over next week’s policy meeting of the European Central Bank.
ASIA’S DAY: Asian markets finished mostly higher. Japan’s Nikkei two hundred twenty five rose 0.7 percent to Nineteen,506.54 and South Korea’s Kospi was up 0.Three percent to Two,372.29. Hong Kong’s String up Seng leaped 1.Two percent to 28,094.61 while Shanghai Composite Index edged down 0.1 percent to Trio,363.63. Australia’s S&P/ASX two hundred was vapid at Five,669.70. Stocks were higher in Taiwan and Singapore but lower in Indonesia.
OIL: Benchmark U.S. crude dropped thirty one cents to $46.13 per barrel in Fresh York while Brent crude, the international standard, fell twenty four cents to $51.42 per barrel in London.
CURRENCIES: The euro, which on Tuesday breached the $1.20 mark for the very first time since January 2015, fell 0.Three percent to $1.1937. The dollar rose 0.Two percent to 109.93 yen.