Stocks rise on company earnings, oil gains on Iran sanctions
By JOE McDONALD
Aug. 07, 2018
BEIJING (AP) — Global stock markets rose Tuesday as investors looked past U.S.-China trade tensions and the price of oil increased after the U.S. imposed new sanctions on Iran.
KEEPING SCORE: Germany's DAX rose 0.8 percent to 12,701 and France's CAC 40 advanced 0.7 percent to 5,516. London's FTSE 100 gained 0.7 percent to 7,716. On Wall Street, the future for the Dow Jones industrial average was 0.3 percent higher and that for the Standard & Poor's 500 index was up 0.2 percent.
ASIA'S DAY: The Shanghai Composite Index rose 2.7 percent to 2,779.37 and Tokyo's Nikkei 225 advanced 0.7 percent to 22,662.74. Hong Kong's Hang Seng added 1.5 percent to 28,248.88 and Seoul's Kospi was 0.6 percent higher at 2,300.16. Sydney's S&P-ASX 200 shed 0.3 percent to 6,253.90 and India's Sensex was 0.1 percent higher at 37,739.62.
EARNINGS MOMENTUM: Stocks are having a good week so far amid gains for media, retail and technology companies, particularly in the U.S. Warren Buffett's Berkshire Hathaway led gains for the financial sector. Investors focused on quarterly results instead of U.S. and Chinese trade threats. Profits have rocketed higher this year thanks to the corporate tax cut and economic growth.
ANALYST'S TAKE: U.S. earnings "are inspiring the bulls at present," said Chris Weston of Pepperstone Group in a commentary. "But for how much longer?" U.S.-China tension "will become a more pressing market issue in the next two months," he said.
CHINA INVESTMENT: A government newspaper said Beijing planned to issue policies to encourage investment amid concern about slowing economic growth and trade tensions. The China Daily said some state banks issued orders to local branches to step up lending. The report, citing an unidentified official of the Cabinet planning agency, said spending on infrastructure is one target for support but gave no other details.
IRAN NUCLEAR: The Trump administration re-imposed U.S. economic sanctions on Iran despite opposition from European allies who want to preserve an agreement to limit Iranian nuclear activity. President Donald Trump complained the 2015 deal left Tehran flush with cash to fuel conflict in the Middle East. European allies said they "deeply regret" the U.S. action.
ENERGY: The U.S. sanctions helped push up the cost of energy. Benchmark U.S. crude added 66 cents to $69.67 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 52 cents on Monday. Brent crude, used to price international oils, gained 97 cents to $74.72 per barrel in London. It advanced 54 cents the previous session.
CURRENCY: The dollar declined to 111.20 yen from Monday's 111.40 yen. The euro gained to $1.1590 from $1.1554.