AGL 22.90 Decreased By ▼ -1.83 (-7.4%)
AIRLINK 103.99 Decreased By ▼ -7.11 (-6.4%)
BOP 5.36 Decreased By ▼ -0.18 (-3.25%)
CNERGY 3.86 Decreased By ▼ -0.04 (-1.03%)
DCL 8.02 Decreased By ▼ -0.43 (-5.09%)
DFML 39.10 Decreased By ▼ -3.15 (-7.46%)
DGKC 86.95 Decreased By ▼ -2.65 (-2.96%)
FCCL 22.70 Decreased By ▼ -0.20 (-0.87%)
FFBL 40.59 Decreased By ▼ -1.39 (-3.31%)
FFL 8.89 Decreased By ▼ -0.15 (-1.66%)
HUBC 153.50 Decreased By ▼ -8.70 (-5.36%)
HUMNL 10.65 Decreased By ▼ -0.70 (-6.17%)
KEL 4.55 Decreased By ▼ -0.23 (-4.81%)
KOSM 3.90 Decreased By ▼ -0.16 (-3.94%)
MLCF 37.50 Decreased By ▼ -1.45 (-3.72%)
NBP 49.00 Decreased By ▼ -1.60 (-3.16%)
OGDC 134.15 Decreased By ▼ -2.96 (-2.16%)
PAEL 26.15 Decreased By ▼ -2.40 (-8.41%)
PIBTL 6.07 Decreased By ▼ -0.18 (-2.88%)
PPL 116.79 Decreased By ▼ -6.01 (-4.89%)
PRL 23.55 Decreased By ▼ -0.75 (-3.09%)
PTC 12.90 Decreased By ▼ -0.84 (-6.11%)
SEARL 57.25 Decreased By ▼ -2.80 (-4.66%)
TELE 7.45 Decreased By ▼ -0.31 (-3.99%)
TOMCL 35.74 Decreased By ▼ -3.66 (-9.29%)
TPLP 8.50 Decreased By ▼ -0.26 (-2.97%)
TREET 15.68 Decreased By ▼ -0.52 (-3.21%)
TRG 56.40 Decreased By ▼ -3.60 (-6%)
UNITY 33.40 Decreased By ▼ -1.00 (-2.91%)
WTL 1.18 Decreased By ▼ -0.04 (-3.28%)
BR100 8,433 Decreased By -274.3 (-3.15%)
BR30 26,639 Decreased By -1159 (-4.17%)
KSE100 80,118 Decreased By -1722 (-2.1%)
KSE30 25,681 Decreased By -584.1 (-2.22%)
Markets

European and US stocks charge higher

  • The Dow rose 0.6 percent at the starting bell, with the S&P 500 and Nasdaq Composite also pushing higher.
Published April 15, 2021

LONDON: European and US stock markets rose on Thursday, supported by buoyant economic data and a strong start to the US earnings season, while traders shrugged off news of weaker growth expectations in Europe's biggest economy Germany.

A drop in new weekly US jobless claims to 576,000 -- the lowest since the pandemic began -- helped bolster sentiment.

And a 9.8 percent jump in retail spending in March thanks to stimulus cheques arriving to US households did not spook those worried about the extra cash causing a surge in inflation.

"US stocks are broadly higher in early action, with the bullish theme being fostered by a flood of earnings and economic data," said analysts at Charles Schwab brokerage.

The Dow rose 0.6 percent at the starting bell, with the S&P 500 and Nasdaq Composite also pushing higher.

The brokerage Bank of America, PepsiCo, UnitedHealth Group, and Citigroup all beat earnings forecasts.

That followed the opening of the US earnings season on Wednesday, when JPMorgan Chase, Goldman Sachs and Wells Fargo each notched earnings at least four times higher than the same three-month period of 2020.

"It's nice to not only see good earnings, but optimistic views going forward, which is very important this particular reporting season," said JJ Kinahan at TD Ameritrade.

That may have helped keep markets pushing higher. Share prices often rise on expectations and then fall when profits are announced. But the optimistic views of the top bankers may have helped reassure that the recovery will take hold.

Meanwhile, the rise in retail spending would have been expected to inflame concerns about inflation, concerns which have seen rates on US government bonds rise and stocks suffer.

But that didn't happen on Thursday, which analysts said may have been due to the exceptional nature of US consumers receiving stimulus cheques and the success of Federal Reserve Chief Jerome Powell in reassuring investors that a spurt in inflation will be just temporary.

In Europe, which is struggling with renewed lockdowns and slow vaccine rollouts amid rising Covid cases, leading research institutes said German economic growth will be weaker than expected in 2021.

Germany's gross domestic product will expand by 3.7 percent this year, according to five economic think tanks, revising down more optimistic predictions by one percentage point.

In afternoon trading, Frankfurt's DAX 30 was 0.3 percent higher.

Paris was up 0.4 percent and London climbed 0.4 percent.

Traders are also keeping an eye on developments in the pandemic crisis as infections in some countries surge and vaccine programmes have been dealt a blow by blood clot concerns over the Johnson & Johnson and AstraZeneca jabs.

Key figures around 1330 GMT -

London - FTSE 100: UP 0.6 percent at 6,977.77 points

Paris - CAC 40: UP 0.4 percent at 6,235.09

Frankfurt - DAX 30: UP 0.3 percent at 15,252.70

EURO STOXX 50: UP 0.4 percent at 3,991.55

New York - Dow: UP 0.6 percent at 33,919.29

Tokyo - Nikkei 225: UP 0.1 percent at 29,642.69 (close)

Hong Kong - Hang Seng Index: DOWN 0.4 percent at 28,793.14 (close)

Shanghai - Composite: DOWN 0.5 percent at 3,398.99 (close)

Euro/dollar: DOWN at $1.1966 from $1.1980 at 2100 GMT

Pound/dollar: UP at $1.3789 from $1.3778

Euro/pound: UP at 86.94 pence from 86.92 pence

Dollar/yen: DOWN at 108.73 yen from 108.94 yen

Brent North Sea crude: DOWN 0.2 percent at $66.47 per barrel

West Texas Intermediate: DOWN 0.4 percent at $62.93 per barrel

Comments

Comments are closed.