Global markets positive on rise of China producer prices
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: infovfm@bov.com. Website: www.vfm.com.mt. Valletta Fund Management Limited is licensed by the MFSA.