LONDON: Europe’s major stock markets rose Thursday, with London energised by the previous day’s oil price surge, while Asia stumbled after Wall Street retreated on growing tech sector concerns.
London’s FTSE 100 index rallied with BP and Shell shares gaining more than one percent, as investors also digested steady UK unemployment data.
Oil prices had vaulted two percent higher Wednesday after signs of strengthening crude demand in top consumer the United States, though the market stabilised Thursday.
“The FTSE 100 has outperformed its mainland European counterparts… with energy names leading the way thanks to a fresh surge in crude prices,” said Shore Markets analyst Joshua Mahony.
European autos, clean energy feel the pinch of Trump 2.0 bets
Energy majors tend to win a shot in the arm from rising crude futures that boost their revenues and profits.
The dollar firmed following losses caused by growing expectations the US Federal Reserve would cut interest rates at least once this year.
In Asia, tech firms took a hit Thursday following big losses for their Wall Street-listed counterparts after a report said US President Joe Biden would target firms supplying China with key semiconductor technology.
Biden is reportedly looking at imposing strict curbs on companies including Tokyo Electron and Dutch firm ASML if they continued allowing Beijing access to their chip tech.
Sentiment was also dented by Donald Trump’s comments that crucial chip supplier Taiwan – home to TSMC and other major producers – should pay the US for helping the island defend itself militarily against China.
Nvidia shares slumped more than six percent Wednesday, while Tokyo Electron dived 8.8 percent Thursday.
“An interview with Donald Trump, for Bloomberg Businessweek, saw the former president casting doubt on US willingness to defend Taiwan, should he be (re)elected in November,” said Steve Clayton, head of equity funds at Hargreaves Lansdown.
“With much of the world’s most advanced chip manufacturing capabilities located within Taiwan… that was not a message the market wanted to hear.
“Nor did it want to hear the Biden administration talking about tougher trade restrictions against China,” Clayton said.
Key figures around 1100 GMT
London - FTSE 100: UP 0.7 percent at 8,243.61 points
Paris - CAC 40: UP 0.6 percent at 7,613.35
Frankfurt - DAX: UP 0.2 percent at 18,477.12
EURO STOXX 50: UP 0.3 percent at 4,904.03
Tokyo - Nikkei 225: DOWN 2.4 percent at 40,126.35 (close)
Hong Kong - Hang Seng Index: UP 0.2 percent at 17,778.41 (close)
Shanghai - Composite: UP 0.5 percent at 2,977.13 (close)
New York - Dow: UP 0.6 percent at 41,198.08 (close)
Euro/dollar: DOWN at $1.0936 from $1.0941 on Wednesday
Pound/dollar: DOWN at $1.2995 from $1.3012
Dollar/yen: UP at 156.39 yen from 156.33 yen
Euro/pound: UP at 84.17 pence at 84.07 pence
West Texas Intermediate: DOWN 0.3 percent at $82.61 per barrel
Brent North Sea Crude: DOWN 0.1 percent at $84.96 per barrel
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