World stock markets edge up as US-China trade tariffs ‘kick in’

Japanese yen, Swiss franc firm against dollar

NEW YORK, July 7, (Agencies): World stock markets rose and the euro climbed to a threeweek peak on Friday as the threat of tariffs by the United States and China on billions of dollars of trade became a reality, though concerns about the conflict escalating capped the appetite for risk.

MSCI’s measure of world equities markets rose nearly 0.8 percent to the highest level since June 22 while Asian stocks climbed nearly half a percent, led by a rebound in Chinese shares.

Stocks edged higher in Europe, with the pan-European FTSEurofirst 300 index closing 0.2 percent higher.

US equities marched higher after monthly jobs data showing a 213,000 gain in non-farm payrolls in June and stable wage growth.

The Dow Jones Industrial Average rose 99.74 points, or 0.41 percent, to 24,456.48, the S&P 500 gained 23.21 points, or 0.85 percent, to 2,759.82 and the Nasdaq Composite added 101.96 points, or 1.34 percent, to 7,688.39.

Benchmark indexes had opened in negative territory and gradually rose in morning trade.

“The trade headlines are at this point keeping the market uncertain,” said Quincy Krosby, chief market strategist at Prudential Financial.

Signs of nervousness about the trade outlook were evident elsewhere in global markets with the Japanese yen and the Swiss franc firm against the dollar while core US and German bonds were in demand.

US stocks climbed on Friday, with the S&P 500 and the Nasdaq hitting their highest levels in two weeks, as strong US jobs growth blunted the impact of an escalating US-China trade dispute.

The Dow Jones Industrial Average rose 99.74 points, or 0.41 percent, to 24,456.48, the S&P 500 gained 23.21 points, or 0.85 percent, to 2,759.82 and the Nasdaq Composite added 101.96 points, or 1.34 percent, to 7,688.39.

All of the 11 major S&P 500 sectors posted gains.

For the week, the Dow increased 0.7 percent, the S&P 500 rose 1.5 percent, and the Nasdaq gained 2.4 percent.

Although US stocks appeared minimally affected by American and Chinese tariffs going into effect, some investors warned that prolonged trade tensions could roil the markets, as they have on several occasions this year.

“You’re going to get some stalling of the market, should trade issues begin to accelerate,” said Gerry Sparrow, a portfolio manager for Interactive Brokers Asset Management, a Bostonbased online investing company.

Shares of Biogen Inc rose 19.6 per-

cent, their biggest percentage gain in more than a decade, after the company and Japanese drugmaker Eisai Co said their Alzheimer’s drug showed promise in a mid-stage trial. Biogen led the S&P 500 in percentage gains and was among the biggest boosts to the index.

The S&P 500 healthcare index rose 1.5 percent, the greatest percentage gain among the S&P’s major sectors, while the Nasdaq biotech index jumped 3.7 percent.

Besides Biogen, technology heavyweights Apple Inc, Microsoft Corp and Facebook Inc provided the biggest boosts to the S&P 500. The S&P technology index rose 1.2 percent.

Advancing issues outnumbered declining ones on the NYSE by a 2.99to-1

ratio; on Nasdaq, a 2.32-to-1 ratio favored advancers.

The S&P 500 posted 22 new 52week highs and two new lows; the Nasdaq Composite recorded 125 new highs and 17 new lows.

Volume on US exchanges was 5.30 billion shares, compared with the 6.98 billion average over the last 20 trading days.

The UK’s top share index rose on Friday, shrugging off any worries over global trade after US tariffs on Chinese goods took effect.

The blue chip FTSE 100 index was up 0.2 percent at 7,617.70 points at its close, while mid caps were flat in percentage terms.

On the day, shares in more defensive

sectors such as telecoms, utilities and healthcare added the most points to the FTSE, suggesting investors were still cautious about jumping into more cyclical sectors such as financials and energy, which have been particularly hit by the uncertainty caused by tension in global trading relationships.

ITV shares were the biggest individual gainers on the index, up 4.3 percent.

However, a more negative note from Barclays on UK motor insurers hit shares in Direct Line, which was among the biggest fallers with a 3.7 percent decline, while a slew of price target downgrades from major brokers weighed on AB Foods , down 4.3 percent.