Global stocks mostly rise on upbeat economic data

AP News
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Posted: Oct 25, 2016 7:28 AM
Global stocks mostly rise on upbeat economic data

SEOUL, South Korea (AP) — Global stocks mostly rose Tuesday amid upbeat economic reports and relatively strong corporate earnings.

KEEPING SCORE: Britain's FTSE 100 added 0.4 percent to 7,015 while France's CAC 40 gained 0.1 percent to 4,555. Germany's DAX rose 0.3 percent to 10,795. Stock futures showed that Wall Street was set for a tepid start. Dow and S&P futures advanced 0.1 percent each.

BUSINESS IN U.S., EUROPE: A survey of business confidence in Germany rose in October, suggesting the country's economy is shrugging off any concerns about Britain's EU exit or shaky banks. Earlier, a separate survey of U.S. manufacturing climbed to its highest level in a year, while an index of business activity in the euro rose in October to its highest so far this year.

ANALYST'S TAKE: "On the data front, manufacturing readings improved for the U.S., Japan and Europe," analysts from Mizuho Bank said in a daily commentary. "This continues to point to ongoing recovery in G3 economies though at a modest pace."

SLOWING KOREA: South Korea's reports were less upbeat, with third-quarter growth slowing to 2.7 percent, its weakest annual pace in more than a year. Manufacturing saw its largest decline in over five years thanks to Samsung's Galaxy Note 7 recalls and a strike at Hyundai Motors. "Korea's economy lost momentum in the third quarter of 2016, and we expect growth will struggle in the coming quarters due to a combination of rising domestic headwinds and subdued global demand," Krystal Tan of Capital Economics said in a commentary.

EARNINGS WATCH: Company earnings have so far been relatively strong. On Tuesday, the focus will be on reports due from, among others, Apple, Caterpillar, Procter & Gamble, and AT&T, whose figures will be scrutinized in the context of its massive deal to take over Time Warner.

ASIA'S DAY: Japan's Nikkei 225 rose 0.8 percent to 17,365.25 while South Korea's Kospi fell 0.5 percent to 2,037.17. Hong Kong's Hang Seng index dipped 0.2 percent to 23,565.11 and the Shanghai Composite index gained 0.1 percent to 3,131.94. Australia's S&P/ASX 200 gained 0.6 percent to 5,442.80. Markets in Southeast Asia were mixed.

OIL: Benchmark U.S. crude added 21 cents to $50.73 per barrel in New York. The contract closed 33 cents lower on Monday. Brent crude, the international standard, rose 12 cents to $51.58 a barrel in London.

CURRENCIES: The dollar rose to 104.54 yen from 104.30 yen. The euro strengthened to $1.0881 from $1.0875.