Connect with us
Advertise With Us

BUSINESS

Global Stocks Rally Before Earnings, Trade War Jolt Boosts Dollar

Published

on


World stocks rose for a second consecutive week on Friday as investors prepared for an expected run of strong earnings in the United States, although fears about the U.S.-China trade conflict kept gains in check and pushed the dollar higher. Expectations of a bumper U.S. earnings season and news that China’s overall global export growth beat expectations led European shares up on Friday with industrials and technology sending the pan-European STOXX 600 up 0.2 percent.

Markets appeared broadly risk-friendly as a weakening safe-haven yen helped lift Japan’s Nikkei stock index .N22 Chinese trade data showed its trade surplus with the United States swelling to a record in June and some fear that could further inflame a trade dispute with Washington.

“The record surplus with the U.S. will inevitably get top billing… China’s exporters have been front-loading exports to beat the imposition of tariffs, implying a relatively sharp drop in coming months,” ADM Investor Services market strategist Mark Otswald said.

With investors braced for the impact of tit-for-tat tariffs, one of China’s main indexes edged lower and China’s yuan headed for its fifth straight week of losses. CNH=EBS

While China has vowed to retaliate to the proposed new U.S. tariffs – 10 percent on $200 billion of Chinese goods – the lack of a specific response to date has sparked global relief.

On Friday, S&P500 e-mini futures ESc1 rose to a five-month high on expectations of solid earnings growth among U.S. firms despite the trade war concern.

5 two percent. That followed the S&P500 hitting four-month highs on Wall Street overnight.

Yet fears about the impact of an escalating U.S.-China trade war continue to cloud the outlook.

 



Copyright LEADERSHIP.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from LEADERSHIP Nigeria Newspapers. Contact: editor@leadership.ng







Advertisement
Comments

MOST POPULAR

Pin It on Pinterest

Share This

Share this post with your friends!