Breaking News
0

World stocks shrug off slowing China trade growth to hit record

Stock MarketsAug 08, 2017 08:13AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A trader works on the floor of the NYSE in New York

By Nigel Stephenson

LONDON (Reuters) - Global stocks inched up to a new record high on Tuesday, shrugging off weaker-than-expected Chinese trade data that clouded an otherwise bright outlook for global growth.

Wall Street was expected to open flat to marginally lower, according to index futures, after slight falls on European bourses and modest gains in Asia.

Chinese imports and exports both fell well short of forecasts last month and growth in overall trade, while still a healthy 8.8 percent, was its slowest this year.

Trade in Germany, Europe's powerhouse economy, slowed abruptly in June - another sign that demand may be starting to flag just as central banks contemplate scaling back stimulus.

However, MSCI's all-country world index (MIWD00000PUS) ticked up to set a new record high at 480.87 points. It was last up less than 0.1 percent at 480.83 points.

The index, which tracks shares in 46 countries, is up for a 10th consecutive month and is on track for its longest monthly winning streak since 2003.

Shares across the globe have been hitting record highs in record low volatility, supported by a benign environment for global growth.

Ratings agency Fitch this week lifted its outlook for the world economy for this year and next.

"Data continue to suggest a synchronized global expansion across both advanced and emerging market economies. Spill-overs from the rebound in emerging market demand are reflected in the fastest growth in world trade since 2010," said Fitch chief economist Brian Coulton.

The pan-European STOXX 600 index (STOXX) was last down less than 0.2 percent, with miners (SXPP) among the losers as the Chinese data weighed on copper prices.

For Reuters Live Markets blog on European and UK stock markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets

MSCI's broadest index of Asia-Pacific shares outside Japan (MIAPJ0000PUS) proved relatively resilient, inching up 0.2 percent and back toward decade highs.

South Korea (KS11) dipped 0.2 percent, while Japan's Nikkei (N225) eased 0.3 percent and China's main markets (CSI300) (SSEC) edged up 0.1 percent. Hong Kong's Hang Seng (HSI) closed up 0.6 percent.

In currency markets, the dollar dipped for a second consecutive day after rising sharply on Friday following stronger-than-expected U.S. jobs numbers, which some analysts said bolstered the case for the Federal Reserve to raise interest rates further.

However, many in markets remain unpersuaded the Fed, having raised rates twice this year, will hike again in 2017.

St Louis Fed President James Bullard said on Monday the central bank could leave rates where they are for now because inflation was not likely to rise much.

The dollar hit a 14-year high in early January in anticipation of U.S. President Donald Trump implementing his pro-growth campaign pledges. Those expectations have faded.

The dollar index, which plumbed 15-month lows last week, was down 0.1 percent (DXY). The euro gained 0.2 percent to $1.1811 while the yen rose 0.4 percent to 110.34 to the dollar .

Sterling was up 0.1 percent at $1.3045 .

German 10-year government bond yields, the benchmark for borrowing costs in the euro zone, held close to their lowest in more than a month at 0.46 percent , supported by expectations that any withdrawal of European Central Bank stimulus would be gradual.

This view was boosted on Monday by data showing industrial output in the euro zone's biggest economy unexpectedly fell 1.1 percent in June from a month earlier.

Brent crude oil, the international benchmark, dipped 11 cents to $52.26 a barrel (LCOc1). An industry source familiar with the matter told Reuters Saudi state oil company Aramco will cut allocations to its customers next month by at least 520,000 barrels a day. [O/R]

"Support is coming from a stabilizing U.S. rig count, falling U.S. inventories and the Saudi cut in exports," Ole Hansen, head of commodity strategy at Denmark's Saxo Bank, told the Reuters Global Oil Forum.

"But against this we still have robust production growth from the United States, Libya and Nigeria."

Copper fell 0.2 percent to just below $6,400 a tonne after Chinese year-on-year imports of the metal fell.

Gold rose 0.6 percent to $1,265 an ounce as the dollar weakened.

(Additioonal reporting by Wayne Cole in Sydney, Jemima kelly, Abhinav Ramnarayan and Christopher Johnson in London, graphic bt Nigel Stephenson; Editing by Alison Williams)

World stocks shrug off slowing China trade growth to hit record
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email