Global equities profit from US earnings season

Asian and European stocks rose Tuesday, mirroring Wall Street on the back of a solid second-quarter US results season.

Healthy corporate earnings have supported global equities in recent weeks, although gains have been limited by continuing concerns about the simmering trade war between China and the US.

In late morning deals, Frankfurt stocks added 0.9 percent, London won 0.6 percent and Paris put on 0.7 percent in value.

Most major Asian markets also rose after another positive Wall Street lead, with energy firms surging along with oil prices.

Energy firms also rallied on rebounding oil prices after US President Donald Trump re-imposed stiff sanctions on major crude producer Iran.

"UK and European markets have rallied ... carrying the baton over from last night's better showing for US markets," said IG analyst Chris Beauchamp.

"Confidence has returned as the S&P 500 moseys its way to towards the January record high, and it remains encouraging to see stock markets hold their ground despite a drumbeat of trade war headlines of late."

'Rising tide lifts all boats'

"Earnings season is shaping up very well indeed, which accounts for why US equities remain comfortably ahead of the likes of Europe, but a rising tide lifts all boats and will reinforce the impression that this economic recovery and its associated bull market has further to run," added Beauchamp.

Analysts cited the strong second-quarter earnings season as a supporting factor for stocks, with S&P 500 companies so far reporting 24 percent higher profits compared with the year-ago period.

And US companies could authorize as much as $1 trillion in share buybacks this year following that surge, according to a note from Goldman Sachs.

As investors awaited the next chapter in the long-running trade tariffs dispute, they moved in to pick up cheaper stocks in Asia, too.

Hong Kong was up 1.5 percent as it built on Monday's gains. Shanghai surged to close 2.7 percent higher, day after hitting a near two-and-a-half-year low. Tokyo jumped 0.7 percent and Singapore 1.8 percent.

(APP)