Pos­i­tive earn­ings push Euro­pean eq­ui­ties higher

Malta Independent - - Financial -

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.

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