Positive earnings push European equities higher
U.S. stocks looked set to put an end to a global rally that spread across Europe and Asia after the midterm elections. Benchmark Treasury yields retreated from the highest level since 2011.
Europe’s main equity gauge pared an earlier surge spurred by upbeat earnings and dividend outlooks from companies including AstraZeneca Plc and Siemens AG. Japan’s Topix jumped 1.7 percent and shares in Hong Kong and South Korea also posted solid gains. The dollar edged higher. Italian bond yields jumped after the European Union warned the nation’s budget deficit will move dangerously close to the economic bloc’s limit of 3 percent.
While the resignation of Attorney General Jeff Sessions has threatened to prolong U.S. political uncertainty after the elections, attention may now shift to Thursday’s Federal Reserve decision. Investors will be looking for any signals on the pace of policy tightening into 2019.
Meanwhile, Chinese trade data showed a surge in exports and imports for October, months before the next round of tariff hikes in the trade war with the U.S. is set to kick in. West Texas oil rose after sliding for eight straight days.
The Stoxx Europe 600 Index climbed 0.2 percent as of 10:33 a.m. London time, to the highest in a month. Futures on the S&P 500 Index declined 0.5 percent. The MSCI Asia Pacific Index advanced 0.9 percent to the highest in more than three weeks. The MSCI Emerging Market Index increased 0.4 percent to the highest in five weeks.
The euro dipped less than 0.05 percent to $1.1423. The British pound decreased less than 0.05 percent to $1.3124.
Gold decreased 0.2 percent to $1,224.03 an ounce, reaching the weakest in more than a week on its fifth consecutive decline. West Texas Intermediate crude increased 0.6 percent to $62.03 a barrel, the first advance in almost two weeks and the largest climb in two weeks.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.