Global stock markets surged Tuesday despite U.S.-Chinese trade tensions after Wall Street posted its strongest gains in a week.
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KEEPING SCORE: In early trading, Frankfurt’s DAX rose 0.9 percent to 12,204.12 points and London’s FTSE 100 gained 0.9 percent to 7,179.37. France’s CAC 40 added 0.5 percent to 5,193.16. On Monday, the DAX advanced 1.5 percent, the FTSE 100 rose 0.7 percent and the CAC 40 added 0.6 percent. On Wall Street, futures for the Dow Jones industrial average and Standard & Poor’s 500 index rose 0.2 percent.
ASIA’S DAY: Tokyo’s Nikkei 225 rose 1.8 percent to 21,417.76 and Hong Kong’s Hang Seng advanced 2.1 percent to 30,510.73. The Shanghai Composite Index added 1 percent to 3,289.64 and Seoul’s Kospi was up 1.5 percent at 2,411.41. Sydney’s S&P-ASX 200 gained 1.1 percent to 5,962.40 and benchmarks in Taiwan, New Zealand and Singapore also rose. India’s Sensex shed 0.2 percent to 33,684.56 while Jakarta and Manila also declined.
TRADE TENSIONS: U.S. President Donald Trump took to Twitter to defend his plan to raise tariffs on imported steel and aluminum, which has riled trading partners and already sparked talk of possible retaliation. Trump highlighted trade deficits with Canada and Mexico, and he said tariffs “will only come off if” the three countries sign a new free-trade agreement. House Speaker Paul Ryan said in a statement he is “extremely worried” about the consequences of a global trade war and urged the White House “to not advance with this plan.”
WALL STREET: Markets rebounded from morning losses to post their best day in a week, highlighting the uncertainty surrounding Trump’s tariffs plans and possible foreign reaction. Boeing Co., which makes the bulk of its sales outside the United States, fell 2.3 percent in the morning before rebounding to end up 2.3 percent. The S&P finished up 1.1 percent, the Dow jumped 1.4 percent and the Nasdaq composite gained 1 percent.
U.S. JOBS: Forecasters expect the latest monthly data Friday to show the number of new jobs created by the economy held steady at 200,000, with hourly earnings up 0.2 percent. “Hourly earnings probably slowed a little after a weather-related boost; we believe the trend is up, however,” said Jim O’Sullivan of High Frequency Economics in a report.
ENERGY: Benchmark U.S. crude shed 6 cents to $62.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract jumped $1.32 on Monday to $62.57. Brent crude, used to price international oils, lost 10 cents to $65.44 in London. It advanced $1.17 on Monday to $62.57.
CURRENCY: The dollar declined to 106.04 yen from Monday’s 106.19 yen. The euro edged up to $1.2342 from $1.2337.
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