World stocks rally on strong earnings

singapore — Global markets were broadly higher on Wednesday after major companies reported strong earnings for the third quarter, soothing fears that rising interest rates may deter corporate investment.

The Dubai index added 1.5 per cent, as market heavyweights Arabtec and Emaar Properties gained 5.8 per cent and 4.1 per cent, respectively. Emirates NBD rose 0.9 per cent after posting a 16 per cent rise in third-quarter profit.

Abu Dhabi’s main index was up 0.9 per cent on the back of a nearly 15 per cent surge in Ras Al Khaimah for White Cement and Construction Materials.

Union National Bank was up 1.9 per cent after an update on a potential merger with Abu Dhabi Commercial Bank, which added 1.5 per cent.

Saudi Arabia’s stock market breached a major technical support for the first time in three weeks. The main Saudi index was up one per cent at 7,907.01 points, above its 200-day average of 7,902.35 points.

The S&P 500 index rose 36 points, or 1.4 per cent, to 2,719 as of 10am Eastern time. The Dow Jones Industrial Average gained 294 points, or 1.2 per cent, to 25,169. The Nasdaq composite jumped 154 points, or 2.2 per cent, to 7,316. The Russell 2000 index of smaller companies picked up 15 points, or one per cent, to 1,522.

In Europe, Britain’s FTSE 100 rebounded 1.5 per cent to 7,138. Germany’s DAX rose 1.2 per cent to 11,421 and France’s CAC 40 rallied 2.1 per cent to 5,083. Japan’s Nikkei 225 index jumped 2.2 per cent to 21,920.46 and the Shanghai Composite index added 1.4 per cent to 2,602.78. Hong Kong’s Hang Seng rose 1.6 per cent to 24,979.69. The Kospi in South Korea gained 0.7 per cent to 2,029.69. Australia’s S&P-ASX 200 reversed early losses, finishing the day 0.4 per cent higher at 5,830.30. Shares were higher in Taiwan and throughout Southeast Asia.

Big companies including Mondelez, which makes Oreos, Cadbury chocolates and Trident gum, have reported strong quarterly earnings. Mondelez’s stocks rose by the most in a year, gaining 5 per cent. Athletic apparel maker Under Armour also posted strong quarterly earnings.