Global stocks rise after Wall Street gains

BEIJING (AP) — Global stock markets rose Monday after Wall Street gained following a turbulent week.

KEEPING SCORE: In early trading, Frankfurt’s DAX jumped 1.7 percent to 12,318.15 and France’s CAC 40 advanced 1.2 percent. London’s FTSE 100 added 1 percent to 7,166.86. On Friday, the DAX tumbled 1.2 percent, the CAC 40 dropped 1.4 percent and the FTSE 100 shed 1.1 percent. On Wall Street, the future for the Dow Jones industrial average rose by an unusually large margin of 0.7 percent and that for the Standard & Poor’s 500 index gained 0.6 percent.

ASIA’S DAY: The Shanghai Composite Index rose 0.8 percent to 3,154.13 and Hong Kong’s Hang Seng spent most of the day in positive territory before losing 0.2 percent to close at 29,459.63. Japanese markets were closed for a holiday. Seoul’s Kospi rose 0.9 percent to 2,385.38 while Sydney’s S&P-ASX 200 shed 0.3 percent to 5,820.70. India’s Sensex advanced 0.6 percent to 34,192.50 and benchmarks in Taiwan, Singapore and Bangkok also gained. New Zealand and Manila retreated.

WALL STREET: A late rally reversed steep losses Friday and lifted the Dow Jones industrial average more than 300 points. The Dow gained 1.4 percent to 24,190.90. The Standard & Poor’s 500 rose 1.5 percent to 2,619.55. The Nasdaq composite added 1.4 percent, to 6,874.49. For the week, the three indexes finished down more than 5 percent. They’re also now all in the red for the year.

ANALYST’S TAKE: “Higher volatility will likely persist for a little while,” said Gaurav Saroliya of Oxford Economics in a report. “The threat to valuation multiples is unlikely to remain as high as it seemed last week. The current equity market turmoil is unlikely to dent continued strong global economic growth. We still see 2018 as the best post-financial crisis year.”

U.S. BUDGET BATTLE: Legislators agreed on a $400 billion budget measure after conflicts over immigration and other issues led to the second temporary government shutdown in three weeks. The measure approved Friday increases military spending and provides $89 billion for disaster relief.

WEEK AHEAD: Taiwan reports quarterly economic growth on Tuesday. Wednesday brings economic growth from Japan and U.S. inflation and retail sales. The United States reports factory output Thursday.

ENERGY: Benchmark U.S. crude gained 81 cents to $60.01 per barrel in electronic trading on the New York Mercantile Exchange. The contract plunged $1.95 on Friday to close at $59.20. Brent crude, used to price international oils, advanced 82 cents to $63.62 in London. It fell $1.98 the previous session.

CURRENCY: The dollar declined to 108.59 yen from Friday’s 108.79 yen. The euro gained to $1.2267 from $1.2251.

This post originally appeared on Townhall


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