Wall Street stocks mostly higher in early trade, European stocks recover

New York, July 3: Wall Street stocks were mostly higher early Tuesday, with gains by petroleum-linked shares boosting the Dow, while the tech-rich Nasdaq retreated.

About 30 minutes into trading on the eve of the Independence Day holiday, the Dow Jones Industrial Average was up 0.3 percent at 24,388.01.

The broad-based S&P 500 rose 0.2 percent to 2,731.97, while the Nasdaq Composite Index shed 0.2 percent to 7,554.61.

US stocks were pressured for much of the spring on worries about trade wars. While those concerns linger, Wall Street finished higher on Monday, led by the tech sector.

Petroleum giants ExxonMobil and Chevron both climbed about two percent as US oil prices rose above $75 a barrel due in part to US efforts to discourage allies from buying Iranian oil.

But Facebook fell 2.0 percent after confirming it faces investigations by the Securities and Exchange Commission and the Federal Bureau of Investigations on its release of consumer data to now-defunct political consultancy Cambridge Analytica.

Tesla Motors was another weak tech stock, dropping 4.0 percent following news that senior engineer Doug Field left the company.

Trading volumes were expected to be light Tuesday, with US markets closing at midday due to the July 4th holiday on Wednesday.

European stock markets recovered Tuesday as political worries eased in Germany, but shares in Swiss miner Glencore saw a meltdown on news of a US legal probe over its global activities.

The US bellwether crude oil contract WTI fell thanks to Saudi Arabia's announcement that it would boost production to rebalance the market but only after, earlier in the session, the WTI oil price had surged above $75 for the first time in more than three years amid supply issues surrounding Iran and Libya.

Europe's benchmark indices were up by between half a percent and one percent at the close, while US stocks showed more modest gains approaching midday on Wall Street.

“European markets are in rebound mode… as an apparent resolution to the German political impasse has helped dispel much of the trade war anxiety that was evident throughout Asia,” noted Joshua Mahony, market analyst at IG trading group.

German Chancellor Angela Merkel has survived a bruising challenge to her authority with a compromise deal on immigration.

– 'Merkel is safe' –

In high-stakes crisis talks overnight, Merkel had put to rest a dangerous row with her hardline Interior Minister Horst Seehofer that had threatened the survival of her fragile coalition government.

“News that Merkel is safe and the fragile German coalition will live to see another day has encouraged traders back into the Dax, which had been suffering at the hands of investor anxiety about new snap elections,” said London Capital Group analyst Jasper Lawler.

London slightly underperformed as gains in the top UK index were stemmed by a plunge in the value of Glencore, which was down a hefty 7.8 percent at 321.90 pence in late trading, having earlier fallen as far as 303 after saying it was being probed by US authorities over its activities in Nigeria, Venezuela and DR Congo.

Earlier, Asian stock markets ended mixed, with investors awaiting US-China tariff announcements in the latest trade war developments.

The yuan extended losses and has fallen around eight percent since the end of March to an 11-month low, as China struggles to cap a debt mountain while supporting growth.

Analysts dismissed some claims that authorities are allowing the Chinese currency to weaken to offset the impact of any tariffs.

“We have already seen the impact on Chinese investors' anxiety over a weaker currency and subsequent capital outflow in 2015-16,” said Tai Hui, JP Morgan Asset Management chief market strategist for Asia-Pacific.

“This is not a can of worms that Beijing wants to open again.”

– Key figures around 1540 GMT –

London – FTSE 100: UP 0.6 percent at 7,593.29 points (close)

Frankfurt – DAX 30: UP 0.9 percent at 12,349.14 (close)

Paris – CAC 40: UP 0.8 percent at 5,316.77 (close)

EURO STOXX 50: UP 1.0 percent at 3,406.34

New York – Dow: UP 0.1 percent at 24,341.49

Tokyo – Nikkei 225: DOWN 0.1 percent at 21,785.54 (close)

Hong Kong – Hang Seng: DOWN 1.4 percent at 28,545.57 (close)

Shanghai – Composite: UP 0.4 percent at 2,786.89 (close)

Euro/dollar: UP at $1.1657 from $1.1642 at 2100 GMT

Pound/dollar: UP at $1.3185 from $1.3143

Dollar/yen: DOWN at 110.57 yen from 110.86 yen

Oil – Brent Crude: DOWN 54 cents at $76.76 per barrel

Oil – West Texas Intermediate: DOWN $1.06 at $72.89 per barrel

 

(AFP/APP)

Posted on: 2018-07-03T20:59:00+05:00

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