JPMorgan earnings hoist stocks, riskier assets

GLOBAL stock markets rose yesterday after JP Morgan’s results kicked off the US corporate earnings season in style, while signs of stabilisation in China’s economy also helped riskier assets on views the growth outlook worldwide is better than thought.

Chinese data showed exports rebounded last month, driving US and euro zone bond yields to threeweek highs and helping offset weaker imports and reports of another cut in German growth forecasts.

Investors are looking for signs of a Chinese economic recovery to temper global growth worries, especially after the International Monetary Fund this week downgraded its 2019 world economic outlook for the third time.

China’s trade results as well as credit data have helped boost risk appetite and reinforce the stabilisation thesis, which should have spill-over effects for the global economy, said Candice Bangsund, a portfolio manager with the global asset allocation team at Fiera Capital in Montreal.

On Wall Street, the Dow Jones Industrial Average rose 186.88 points, or 0.71%, to 26 329.93. The S&P 500 gained 12.47 points, or 0.43%, to 2 900.79 and the Nasdaq Composite added 19.07 points, or 0.24%, to 7 966.43 .

The euro gained despite the German growth concerns.

Gold steadied en route to its first weekly gain in three weeks as the dollar weakened, although the metal’s advances were capped by stronger equities.

Gold crept higher after falling more than 1% on Thursday to break below $1 300 following solid US data. Spot gold traded at $1 292.41 per ounce. |