Stocks Rise on Earnings Boost; Dollar Extends Gain
July 23, 2019 @ 13:14 UTC
European stocks advanced alongside shares in Asia and U.S. equity futures Tuesday amid a busy week of corporate earnings and potential developments in trade negotiations. Oil stabilized and the dollar climbed.
The Stoxx Europe 600 gained after upbeat reports from heavyweights including UBS, Santander, Hermes and AMS. The benchmark’s index of carmakers rose as much as 3.3%, buoyed by positive news on BMW, Faurecia and Daimler. The British pound added to losses before the announcement of Prime Minister Theresa May’s replacement, likely to be former Foreign Secretary Boris Johnson. The dollar rose for a fourth day and Treasury yields edged higher.
While they may be in a confident mood, investors will be searching corporate earnings for signs of whether trade tensions are affecting profits. In the meantime, the U.S. and China are moving closer to resuming face-to-face trade talks, as purchases of American farm products and a ban on sales to China’s Huawei Technologies Co. remain sticking points.
Futures on the S&P 500 Index gained 0.2% as of 10:17 a.m. London time. The Stoxx Europe 600 Index climbed 0.6%, the biggest increase in almost three weeks. The U.K.’s FTSE 100 Index jumped 0.7% to the highest in a week. The MSCI Asia Pacific Index rose 0.2%. The MSCI Emerging Market Index increased less than 0.05%. The Bloomberg Dollar Spot Index gained 0.2% to the highest in two weeks. The British pound declined 0.4% to $1.2426, the largest fall in a week. The Japanese yen fell 0.3% to 108.20 per dollar, the weakest in a week. The euro declined 0.2% to $1.1181, the weakest in more than seven weeks. West Texas Intermediate crude increased 0.1% to $56.26 a barrel.