Global shares rise on US, China data; miners, oil cos buoy FTSE
S&P 500, Nasdaq hit record highs
NEW YORK, Nov 2, (RTRS): World equity markets surged on Friday after a stronger– than-expected US employment report, a surprise bounce in Chinese manufacturing and optimism over US–China trade talks tamped down fears of slowing global growth.
Equity markets in Europe and across the Americas rallied, with the S&P 500 and Nasdaq hitting closing record highs and MSCI’s gauge of equity performance across the globe rising to within 2.1% of its all–time peaks set in January 2018.
The strong US and Chinese data and remarks that an initial trade pact with China was near pushed up the price of oil, overshadowing a Reuters survey that showed crude prices are expected to remain under pressure through next year.
In China, the Caixin/Markit Manufacturing Purchasing Managers’ Index for October rose to 51.7 from 51.4 the prior month, marking the third straight month of expansion. Economists had expected a dip in growth to 51.0.
The data lifted Chinese blue chips, which jumped 1.7% in their best day since mid-August. Seoul’s Kospi rose 0.8% and Hong Kong’s Hang Seng added 0.7% on news of the manufacturing report.
MSCI’s gauge of stock performance in 47 countries rose 0.81%, while the pan-European STOXX 600 index closed up 0.68%.
On Bay Street in Toronto, the TSX composite index gained 0.67%, while in Mexico the Bolsa index rose 1.1% and in Brazil the Bovespa climbed 0.91%. The S&P rose for the fourth straight week, its longest streak since February, while the Nasdaq has gained the past five weeks. Quarterly earnings have come in stronger than anticipated and US-China trade rhetoric has appeared to be productive.
On Wall Street, the Dow Jones Industrial Average rose 301.13 points, or 1.11%, to 27,347.36. The S&P 500 gained 29.35 points, or 0.97%, to 3,066.91 and the Nasdaq Composite added 94.04 points, or 1.13%, to 8,386.40. For the week, the Dow rose 1.44%, the S&P 500 climbed 1.47% and the Nasdaq rose 1.74%, spurred by corporate earnings.
About 76% of the 356 S&P 500 companies that have reported so far have beaten profit estimates, according to Refinitiv data.
US
US stocks rallied to close out the trading week on Friday as the S&P 500 set a closing record for the third time in five days after an upbeat US jobs report and data on Chinese manufacturing eased concerns about slowing global growth.
The strong jobs number helped overshadow a report that showed the manufacturing sector contracted for a third straight month.
Along with the S&P’s new high, the Nasdaq eclipsed its July closing record. The S&P has climbed for four straight weeks, its longest streak since February, while the Nasdaq has gained in five straight weeks as quarterly earnings have come in stronger than anticipated and US–China trade rhetoric has appeared to be productive. The Dow sits less than 12 points from a closing record.
The Dow Jones Industrial Average rose 300.86 points, or 1.11%, to 27,347.09, the S&P 500 gained 29.36 points, or 0.97%, to 3,066.92 and the Nasdaq Composite added 94.04 points, or 1.13%, to 8,386.40.
For the week, the Dow rose 1.44%, the S&P 500 climbed 1.47% and the Nasdaq rose 1.74%.
US-China trade news remained supportive for stocks, as Beijing’s state-media Xinhua News Agency reported the two countries have “reached consensus on principles.” Earlier, US Commerce Secretary Wilbur Ross said the “phase one” trade pact with China appeared to be in good shape.
About 76% of the 356 S&P 500 companies that have reported so far have beaten profit estimates, according to Refinitiv
data.
However, profit growth forecasts for the next four quarters have been revised lower, even as expectations for a decline in third-quarter earnings have shrunk to 0.8% from 2.2% at the start of October.
Oil major Exxon Mobil Corp rose 3.00% after it beat recently lowered third–quarter profit expectations. The energy sector gained 2.50% as the bestperforming S&P sector, and oil prices jumped on trade deal progress.
UK
Oil heavyweights and miners led the charge on London’s FTSE 100 on Friday as Chinese factory data and a stronger than expected US employment report helped the index to bounce back from its worst session in a month.
The FTSE 100 advanced 0.8%, recouping almost all of its more than 1% drop in the previous session, while the FTSE 250’s 0.7% advance was its best day in more than two weeks.
The mining sector enjoyed its best day on the market in more than nine months, with Rio Tinto, Glencore and Anglo American rising more than 3% to top the main board.
Oil majors Shell and BP both gained 1.6% to boost the blue-chip index further.
Sterling, meanwhile, was steady as investors brace for a BBritish general election in December.
Europe
European shares clocked their best day in over a week on Friday, as upbeat jobs data from the United States and a surprise bounce in Chinese manufacturing tempered nerves around slowing global growth.
The pan-European STOXX 600 index closed 0.7% higher, while German shares, heavily export-oriented, were also up 0.7%.
Mining stocks led gains among subsectors with a 3.2% jump following strong factory activity data from China, the world’s top metals consumer.
After a volatile week packed with corporate news and conflicting tones on the trade front, the benchmark index registered its fourth straight weekly gain with a 0.4% rise.
Danish stocks outperformed their European peers with a 2.5% jump, boosted by transport and logistics services company DSV Panalpina, which gained 7.4% after reporting strong third-quarter results.