Stocks

World shares gain after technology-powered rally on Wall St

PTI New York | Updated on October 15, 2021

Investors have been encouraged by strong earnings reports, as every S&P 500 company that has reported earnings this week has beaten forecasts

Shares were mostly higher in Europe and Asia on Friday after technology companies powered the biggest rally on Wall Street since March.

Investors have been encouraged by strong earnings reports, as every S&P 500 company that has reported earnings this week has beaten forecasts.

“Overall, it is safe to say that the US equity market is fully in a risk-on mode and traders aren’t afraid in backing riskier assets,” Naeem Aslam of Avatrade said in a commentary.

Inflation remains a key concern, and Friday will bring an update on how higher prices may be affecting consumer spending when the Commerce Department releases retail sales for September.

Germany’s DAX edged 0.2 per cent higher to 15,493.34 and the CAC 40 in Paris climbed 0.4 per cent to 6,712.55. Britain’s FTSE 100 added 0.2 per cent to 7,224.41.

The futures for the S&P 500 was 0.3 per cent higher while the contract for the Dow industrials gained 0.4 per cent.

Asian markets

In Asian trading, Tokyo’s Nikkei 225 added 1.8 per cent to to 29,068.63 and the Hang Seng climbed 1.5 per cent to 25,330.96. In Seoul, the Kospi advanced 0.9 per cent to 3,015.06.

Taiwan shares jumped 2.4 per cent on news that computer chip maker TSMC had upgraded its profit outlook.

TSMC, the world’s biggest chip-maker, climbed 4.7 per cent after its CEO confirmed reports it plans to open a semiconductor fabrication plant in Japan.

The Shanghai Composite index picked up 0.4 per cent to 3,572.37.

China will report its last quarter growth on Monday in another indicator of how the recovery from the pandemic downturn is progressing.

The S&P/ASX 500 in Australia gained 0.7 per cent to 7,362.00. India’s markets were closed for a holiday.

On Thursday, a wave of buying gained momentum from a day earlier, when Wall Street broke a three-day losing streak.

The S&P 500 surged 1.8 per cent. The Dow Jones Industrial Average rose 1.6 per cent and the tech-heavy Nasdaq climbed 1.7 per cent.

Small company stocks also notched gains. The Russell 2000 index rose 1.4 per cent, to 2,274.18.

Businesses are still facing pressure from rising costs. The Labor Department said inflation at the wholesale level rose 8.6 per cent in September compared to a year ago, the largest advance since the 12-month change was first calculated in 2010.

Bond yields held steady. The yield on the 10-year Treasury edged up to 1.54 per cent from 1.53 per cent late Thursday.

In other trading on Friday, US benchmark crude oil topped $82 per barrel, gaining 72 cents to $82.03 per barrel in electronic trading on the New York Mercantile Exchange. It surged 87 cents to $81.31 per barrel on Thursday.

Brent crude, the standard for international pricing, added 83 cents to $84.83 per barrel.

The US dollar strengthened to 114.27 Japanese yen from 113.67 yen late Thursday. The euro rose to $1.1606 from $1.1596.

Published on October 15, 2021

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