Global mar­kets pos­i­tive on rise of China pro­ducer prices

Malta Independent - - BUSINESS & FINANCE -

Global mar­kets saw a lift at the end of the week af­ter a re­port showed Chi­nese pro­ducer prices rose for the first time since 2012. Data is­sued on Thurs­day re­vealed a sur­prise drop in ex­ports reignited con­cerns that slower growth in China would weigh on the global econ­omy. That briefly sent U.S. shares to three-month lows be­fore ral­lies in de­fen­sive stocks such as util­i­ties and real es­tate helped trimmed losses in the af­ter­noon.

Euro­pean stocks re­bounded on Fri­day af­ter three days of de­clines as the bet­ter-than-ex­pected Chi­nese data helped ease in­vestor con­cerns over global growth and the health of the world’s sec­ond­biggest econ­omy. The Stoxx 600 climbed 1.3 per­cent at the close of trad­ing, its big­gest gain since the 22 Septem­ber. The eq­uity gauge rose 0.1 per­cent this week, halt­ing a two-week los­ing streak. Fri­day’s increase pushed it above its 100-day mov­ing av­er­age af­ter it dipped be­low in the past two days. Gains were helped as fore­cast-beat­ing re­sults from Cit­i­group Inc. and JPMor­gan Chase & Co. al­le­vi­ated some con­cerns about the strength of U.S. earn­ings.

Euro­pean stocks have yet to fully re­cover from a slide at the start of the year pre­cip­i­tated by anx­i­ety over a Chi­nese slow­down. The reemer­gence of this con­cern dur­ing this week unset­tled in­vestors al­ready fret­ting over the im­pli­ca­tions of a Fed­eral Re­serve in­ter­est rate hike this year, U.S. elec­tions and an Ital­ian ref­er­en­dum in Novem­ber, as well as the fall­out from Brexit. Anx­i­ety about the health of cor­po­rate Europe has also weighed on eq­ui­ties.

Oil dropped as the dol­lar ad­vanced to near a seven-month high and U.S. crude stock­piles climbed for the first time since Au­gust. U.S. crude sup­plies rose 4.85 mil­lion bar­rels last week, an En­ergy In­for­ma­tion Ad­min­is­tra­tion re­port showed Thurs­day. OPEC took a step to­ward co­or­di­nated sup­ply curbs with Rus­sia this week and will meet for a “tech­ni­cal ex­change” to set a road map for out­put lev­els later this month.

This ar­ti­cle was com­piled byVal­letta Fund Man­age­ment Lim­ited, a mem­ber of the BOV Group.Val­letta Fund Man­age­ment,TG Complex, Suite 2, Level 3, Brew­ery Str., Mriehel BKR 3000 Freep­hone: 80072344. E-mail: in­ Web­site: Val­letta Fund Man­age­ment Lim­ited is li­censed by the MFSA.

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