GLOBAL MARKETS: European Stocks Seen Up; Global Rally Ongoing
Thu, Apr 16 2009, 06:29 GMT
http://www.djnewswires.com/eu
GLOBAL MARKETS: European Stocks Seen Up; Global Rally Ongoing
LONDON (Dow Jones)--European stocks are expected to open higher Thursday after a strong finish on Wall Street Wednesday and a rally in Asia as China's GDP was seen in a favorable light, helping foster the idea a recovery may not be far away.
Matt Buckland, dealer at CMC Markets said the Chinese GDP data "could have been worse," which will add to the European session's strength after it provided a boost to the major indexes in Asia.
Buckland called London's FTSE 100 index up 29 points, or 0.7%, at 3997.0, Frankfurt's DAX index up 42 points, or 0.9%, at 4591.0 and the CAC-40 index in Paris 28 points, or 0.9%, higher at 3014.0.
China's first quarter gross domestic product data were also encouraging - if not as much as some speculation had hoped. GDP grew 6.1% on the year, slightly better than the 6.0% tipped in a Dow Jones Newswires poll of economists, while first quarter urban fixed-asset investment rose 28.6% on the year, above the 26.5% forecast.
"To me the Chinese numbers were largely expected," said Chris Weston, institutional dealer at IG Markets. "However the numbers did not fall off a cliff and generally show a bottoming process in their economy," he said.
As a result, Asian share markets were mostly higher, with Japan's Nikkei 225 closing up 0.14% and South Korea's Kospi Composite 0.3% higher. Taiwan shares were up 2.1% and Hong Kong's Hang Seng Index was up 0.3%, climbing up from earlier lows.
Still, "earnings news from JP Morgan stands to keep the banking sector in focus too and could well produce further volatility," Buckland warned.
In the U.S. Wednesday, stocks surged and the Dow Jones Industrial Average closed more than 100 points higher as investors concentrated on signs of a turn in economic demand in comments from International Paper, Intel and in federal government data.
Stocks added to gains after the Federal Reserve's regional report, or Beige Book, showed that while consumer spending remained generally weak, some districts reported that sales rose slightly or declines moderated.
The DJIA rose 1.4% to 8029.62 and the broad Standard & Poor's 500 index rose 1.3% to 852.06. The Nasdaq Composite rose 0.1%, weighed down by Intel, which warned it expects second-quarter revenue that is flat to slightly lower than the first-quarter level. Still, Intel said the personal-computer market was likely past its worst.
In the foreign exchanges, the dollar slipped against the yen. Analysts said that although the China GDP figure was slightly better than some forecasts, currency players had been factoring in a stronger figure and so the greenback was sold in favor of the yen, perceived as a less risky play.
At 0620 GMT, the U.S. dollar stood at Y98.98, from Y99.46 late in New York, and the euro at Y130.64 versus Y131.56. The single currency was at $1.3205, from $1.3225.
The positive tone in the equity markets has resulted in a move away from the perceived safe haven of sovereign debt, and at 0625 GMT the June bund contract stood at 122.67, down 0.27.
Meanwhile, the front-month Nymex crude oil futures contract was up 49 cents at $49.74 a barrel, after slipping 16 cents in New York. Spot gold was down only $1 from New York, at $892.10 a troy ounce.
In economic news, the euro-zone consumer price index is expected at 0900 GMT along with industrial production. In terms of individual stocks, Groupe Danone will be in focus after it reported a 2.3% fall in first-quarter revenue, held back by weaker consumer spending in dairy. And Roche Holding AG reported a 7% increase in first-quarter revenue, driven by brisk sales of its portfolio of cancer drugs.
-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=YMoVESPZ%2BrZ15kVS1YhILg%3D%3D. You can use this link on the day this article is published and the following day.
By Andrea Tryphonides Of DOW JONES NEWSWIRES LONDON (Dow Jones)--European stocks are expected to open higher Thursday after a strong finish on Wall Street Wednesday and a rally in Asia as China's GDP was seen in a favorable light, helping foster the idea a recovery may not be far away.
Matt Buckland, dealer at CMC Markets said the Chinese GDP data "could have been worse," which will add to the European session's strength after it provided a boost to the major indexes in Asia.
Buckland called London's FTSE 100 index up 29 points, or 0.7%, at 3997.0, Frankfurt's DAX index up 42 points, or 0.9%, at 4591.0 and the CAC-40 index in Paris 28 points, or 0.9%, higher at 3014.0.
China's first quarter gross domestic product data were also encouraging - if not as much as some speculation had hoped. GDP grew 6.1% on the year, slightly better than the 6.0% tipped in a Dow Jones Newswires poll of economists, while first quarter urban fixed-asset investment rose 28.6% on the year, above the 26.5% forecast.
"To me the Chinese numbers were largely expected," said Chris Weston, institutional dealer at IG Markets. "However the numbers did not fall off a cliff and generally show a bottoming process in their economy," he said.
As a result, Asian share markets were mostly higher, with Japan's Nikkei 225 closing up 0.14% and South Korea's Kospi Composite 0.3% higher. Taiwan shares were up 2.1% and Hong Kong's Hang Seng Index was up 0.3%, climbing up from earlier lows.
Still, "earnings news from JP Morgan stands to keep the banking sector in focus too and could well produce further volatility," Buckland warned.
In the U.S. Wednesday, stocks surged and the Dow Jones Industrial Average closed more than 100 points higher as investors concentrated on signs of a turn in economic demand in comments from International Paper, Intel and in federal government data.
Stocks added to gains after the Federal Reserve's regional report, or Beige Book, showed that while consumer spending remained generally weak, some districts reported that sales rose slightly or declines moderated.
The DJIA rose 1.4% to 8029.62 and the broad Standard & Poor's 500 index rose 1.3% to 852.06. The Nasdaq Composite rose 0.1%, weighed down by Intel, which warned it expects second-quarter revenue that is flat to slightly lower than the first-quarter level. Still, Intel said the personal-computer market was likely past its worst.
In the foreign exchanges, the dollar slipped against the yen. Analysts said that although the China GDP figure was slightly better than some forecasts, currency players had been factoring in a stronger figure and so the greenback was sold in favor of the yen, perceived as a less risky play.
At 0620 GMT, the U.S. dollar stood at Y98.98, from Y99.46 late in New York, and the euro at Y130.64 versus Y131.56. The single currency was at $1.3205, from $1.3225.
The positive tone in the equity markets has resulted in a move away from the perceived safe haven of sovereign debt, and at 0625 GMT the June bund contract stood at 122.67, down 0.27.
Meanwhile, the front-month Nymex crude oil futures contract was up 49 cents at $49.74 a barrel, after slipping 16 cents in New York. Spot gold was down only $1 from New York, at $892.10 a troy ounce.
In economic news, the euro-zone consumer price index is expected at 0900 GMT along with industrial production. In terms of individual stocks, Groupe Danone will be in focus after it reported a 2.3% fall in first-quarter revenue, held back by weaker consumer spending in dairy. And Roche Holding AG reported a 7% increase in first-quarter revenue, driven by brisk sales of its portfolio of cancer drugs.
-By Andrea Tryphonides, Dow Jones Newswires; +44-20-7842-9281; andrea.tryphonides@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=YMoVESPZ%2BrZ15kVS1YhILg%3D%3D. You can use this link on the day this article is published and the following day.
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