Global stocks rise after days of turbulent trading

GLOBAL STOCKS rose on Thursday, but analysts said it was too early to say markets had stabilised after a week of turbulent trading. Apart from persisting worries over prospects for a United States tax overhaul and doubts over the pace of rate hikes by the Federal Reserve, market-moving news was scarce.

Britain’s FTSE 100 was up 0.1 per cent at 7,383 and France’s CAC 40 rose 0.7 per cent to 5,335, while Germany’s DAX gained 0.5 per cent to 13,040. Futures augured modest gains on Wall Street. S&P and Dow futures both added 0.3 per cent.

Japan led the Asian region higher with its benchmark Nikkei 225 jumping 1.5 per cent to close at 22,351.12 and snapping a six-session losing streak. South Korea’s Kospi advanced 0.7 per cent to 2,534.79. Hong Kong’s Hang Seng Index gained 0.6 per cent to 29,018.76. Australia’s S&P/ASX 200 added 0.2 per cent to 5,943.50, while China’s Shanghai Composite Index slipped 0.1 per cent to 3,399.25.

While the Federal Reserve’s rate hike in December is “a done deal”, Rob Carnell, head of research for Asia at ING bank, said that the latest share price declines and lower commodity prices “raise worries about growth and the pace of tightening in 2018”.

Analysts said strong US retail sales data and consumer prices released on Wednesday gave a green light to the Fed to raise rates next month. US retail sales rose 0.2 per cent in October, a healthy rate, and consumer prices rose 0.1 per cent last month.

Benchmark US crude was down eight cents at $55.25 per barrel in electronic trading on the New York Mercantile Exchange. It fell 37 cents on Wednesday. Brent crude, used to price international oils, shed 19 cents to $61.68 per barrel in London, having lost 34 cents on Wednesday.

The dollar rose to ¥113.18 from ¥112.84, while the euro sank to $1.1764 from $1.1790.