World stocks rise as Germany finds middle ground on migrant crisis
singapore — Global stocks recovered on Tuesday as German leaders reached a surprise compromise on migration, putting to rest fears that the weeks-long dispute may topple Merkel’s fourth government.
Germany’s DAX rose one per cent to 12,361.70 points and France’s CAC 40 added 0.8 per cent to 5,318.70 in early trading. Britain’s FTSE 100 gained 0.3 per cent to 7,567.03. Wall Street was poised to open higher. Dow futures rose 0.3 per cent to 24,363.00 and S&P 500 futures added 0.2 per cent to 2,732.70. US markets are scheduled to close early ahead of Wednesday’s Independence Day holiday.
Asian markets tumbled in the morning as back-and-forth exchanges
over looming US tariffs added to worries over the trade war brewing between China and the US. Hong Kong’s Hang Seng, reopening after a market holiday on Monday, closed 1.4 per cent lower at 28,545.57 as investors reacted to weaker than expected Chinese economic data. The benchmark Nikkei 225 index lost 0.1 per cent to 21,785.54 while South Korea’s Kospi added 0.1 per cent to 2,272.76. The Shanghai Composite index gained 0.4 per cent to 2,786.89. Australia’s S&P/ASX 200 rose 0.5 per cent to 6,210.20 after the Reserve Bank of Australia kept its 1.5 per cent benchmark interest rate unchanged.
On Monday, German chancellor Angela Merkel and her rebellious political allies reached a compromise on migration that both sides said addressed their concerns.