Global shares rise on China stimulus promise, oil stabilizes

AP News
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Posted: May 10, 2016 7:51 AM
Global shares rise on China stimulus promise, oil stabilizes

TOKYO (AP) — Global stocks rose Tuesday after a promise of stimulus from China helped to counter pessimism over weak trade data from the country, while oil prices stabilized after sharp losses.

KEEPING SCORE: France's CAC 40 added 0.2 percent to 4,332 and Germany's DAX also rose 0.3 percent to 10,013. Britain's FTSE 100 gained 0.2 percent to 6,127. Dow and S&P 500 futures both edged up 0.3 percent.

CHINA FACTOR: China's Cabinet approved measures to boost exports as Beijing struggles to reduce gluts in many industries and reverse an export decline that threatens to cause politically dangerous job losses. The measures announced late Monday include more bank lending, an increase in tax rebates and support for export credits. They followed a decline in trade in April.

ENERGY: U.S. crude fell 7 cents to $43.37 a barrel in electronic trading on the New York Mercantile Exchange, adding to its $1.22 drop overnight. Brent crude, the benchmark for international oil prices, added 43 cents to $44.07 a barrel in London.

THE QUOTE: "Two developing macro themes are set to dominate markets in the near-term: the continued gain in the U.S. dollar and the pullback in the oil price. Last night saw these trends continue to develop," Angus Nicholson of IG said in a note.

ASIA'S DAY: Japan's benchmark Nikkei 225 added 2.2 percent to 16,565.19 as the dollar regained strength, a boon for the nation's exporters. Australia's S&P/ASX 200 rose 0.4 percent to 5,342.80. South Korea's Kospi added 0.8 percent to 1,982.50. Hong Kong's Hang Seng added 0.4 percent to 20,242.68, while the Shanghai Composite inched up 0.02 percent to 2,832.59.

CURRENCIES: The dollar rose to 109.22 yen from 108.29 yen. The euro slipped to $1.1370 from $1.1401.

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