Europe, Asia Stocks Follow Wall Street Higher

  • China inflation picks up
  • Crude extends gains on supply worries
  • Pound flat after cabinet resignations

Global stocks edged higher Tuesday after the Dow Jones Industrial Average posted its best day in a month on Monday.

The Stoxx Europe 600 was up 0.1% in early morning trading, led by gains in oil-and-gas companies. Brent crude prices were up 0.7% to $78.63 on Tuesday, building on recent gains amid ongoing supply issues in Libya.

Futures markets pointed to a 0.2% opening gain for the Dow Jones Industrial Average. Most Asian markets ended higher.

Investors shrugged off recent trade tensions between the U.S. and China to send stocks higher Monday. Many are looking ahead to the second-quarter earnings season this week.

Elsewhere, the British pound was little changed Tuesday following political turmoil in the U.K. that has seen the resignation of two senior government ministers including Foreign Secretary

Boris Johnson,

a Brexit hard-liner. The currency was flat against the dollar at $1.3261 after falling slightly on Monday.

Derek Halpenny,

analyst at MUFG, wrote in a note Monday that the pound is likely to remain volatile. At the same time, the loss of Brexit hard-liners could mean a “softer Brexit, which will calm market nerves.” he added.

The resignations come after Prime Minister

Theresa May’s

government agreed to a plan for Britain’s future relation with the EU on Friday. Mr. Johnson wrote in his resignation letter that the plan would keep the U.K. economy too bound by EU regulations and mean the country was “headed for the status of colony.”

In Asia, stocks continued to climb even as Chinese data showed an uptick in inflation, led by increases in food and fuel prices. Core inflation remained unchanged.

China’s Shanghai Composite Index rose 0.4% while Hong Kong’s Hang Seng gained 0.5%. Meanwhile, Japan’s Nikkei rose 0.7% and South Korea’s Kospi climbed 0.4%.

Elsewhere in markets, yields on 10-year U.K. bonds rose slightly to 1.293%, while yields on 10-year Treasurys rose to 2.865% from 2.860% on Monday. Yields rise as prices fall.

The WSJ Dollar Index, which measures the U.S. currency against 16 others, was mostly flat.

Source link

Leave a Reply

Your email address will not be published.