STOCK EXCHANGES AROUND THE WORLD
US indexes boosted by stimulus hopes
Wall Street’s three main indexes rose more than 1% on Friday, clawing back some losses from a brutal selloff this week on hopes of more stimulus from central banks to perk up slowing growth.
Stocks got a boost after a report that Germany’s government would be prepared to ditch its balanced budget rule and take on new debt to counter a possible recession.
Earlier, China’s state planner said it would roll out a plan to boost disposable income this year and in 2020 to spur consumption as the economy slows.
Traders are betting on a one-in-five chance of a 50 basis point interest rate cut from the Federal Reserve, while expecting aggressive easing from the European Central Bank at its policy meetings in September.
At 12:36 p.m. ET, the Dow Jones Industrial Average was up 277.57 points, or 1.09%, at 25,856.96, the S&P 500 was up 39.18 points, or 1.38%, at 2,886.78. The Nasdaq Composite was up 124.74 points, or 1.61%, at 7,891.35.
All of the 11 major S&P sectors were higher, with technology stocks providing the biggest boost. Advancing issues outnumbered decliners by a 3.68-to-1 ratio on the NYSE and by a 3.72-to-1 ratio on the Nasdaq. The S&P index recorded 29 new 52-week highs and seven new lows, while the Nasdaq recorded 31 new highs and 81 new lows.
FTSE stock market suffers longest outage in years
A technical glitch delayed the start of trading on Friday on the UK blue chip FTSE 100 and midcap stock indexes for almost two hours in what was the longest outage at one of the world’s top bourses in eight years.
The London Stock Exchange suffered a “technical software issue”, which postponed the opening of trading until 0840 GMT, a spokeswoman said in an email. The markets normally open at 0700 GMT.
In a statement on its website, it said it was still investigating the issue.
The fault affected hundreds of shares in some of the UK’s largest companies, including Shell, Unilever and HSBC and BHP Group, worth a total of $2.8 trillion.
LSE shares listed on the FTSE 100 were up 0.9% in early deals, in line with the broader FTSE 100.
This is the second outage at the LSE, which handles about 5 billion pounds ($6.1 billion) worth of volume each day, in just over a year.
In June 2018, the opening auction was delayed due to a technical fault, but trading resumed after an hour. Prior to that, the market was shut until lunchtime one day in February 2011.
Traders were frustrated by the latest outage coming during a hectic week on global financial markets, hit by worries about a US recession and the US-China trade spat.
India Sensex, Nifty surge
Domestic stock markets clocked sharp gains last Friday, rising for a second straight day, after a report by news agency Reuters said that the government is likely to exempt foreign portfolio investors from higher taxes triggered a surge in the markets.
The S&P BSE Sensex index rose as much as 460.18 points in afternoon deals to 37,787.54, and the broader NSE Nifty benchmark climbed to 11,178.55, up 146.1 points from the previous close. Buying across most sectors, led by financial, auto, metal and energy, pushed the markets higher. At 12:52 pm, the Sensex traded 416.67 points – or 1.12 per cent – higher at 37,744.03, while the Nifty was up 136.65 points – or 1.24 per cent – at 11,169.10.
Japanese stocks move higher
Japan stocks were higher after the close on last Friday, as gains in the Paper & Pulp, Railway & Bus and Real Estate sectors led shares higher.
At the close in Tokyo, the Nikkei 225 gained 0.44percent. Rising stocks outnumbered declining ones on the Tokyo Stock Exchange by 1920 to 1508 and 265 ended unchanged. The Nikkei Volatility, which measures the implied volatility of Nikkei 225 options, was unchanged 0.00percent to 21.06. Crude oil for September delivery was up 0.11percent or 0.06 to $52.60 a barrel. Elsewhere in commodities trading, Brent oil for delivery in October rose 0.12percent or 0.07 to hit $57.45 a barrel, while the December Gold Futures contract rose 0.27percent or 4.05 to trade at $1513.55 a troy ounce. USD/JPY was down 0.12percent to 105.93, while EUR/JPY fell 0.03percent to 118.52. The US Dollar Index Futures was down 0.02percent at 97.412.
France stocks higher
France stocks were higher after the close last Thursday, as gains in the Foods & Drugs, Gas & Water and General Financial sectors led shares higher.
At the close in Paris, the CAC 40 rose 2.31percent, while the SBF 120 index gained 2.25percent. Rising stocks outnumbered declining ones on the Paris Stock Exchange by 378 to 161 and 108 ended unchanged. The CAC 40 VIX, which measures the implied volatility of CAC 40 options, was down 11.98 percent to 17.51. Gold Futures for December delivery was down 0.85 percent or 12.85 to $1506.75 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 2.64 percent or 1.35 to hit $52.44 a barrel, while the October Brent oil contract rose 2.17 percent or 1.22 to trade at $57.45 a barrel. EUR/USD was up 0.07percent to 1.1204, while EUR/GBP rose 0.12percent to 0.9231. The US Dollar Index Futures was up 0.03percent at 97.377.
Germany stocks surge
Germany stocks were higher after the close last Thursday, as gains in the Pharmaceuticals & Healthcare, Technology and Chemicals sectors led shares higher.
At the close in Frankfurt, the DAX added 1.68 percent, while the MDAX index added 1.86percent, and the TecDAX index added 1.45 percent. Rising stocks outnumbered declining ones on the Frankfurt Stock Exchange by 501 to 171 and 85 ended unchanged. Shares in Puma SE rose to 52-week highs; rising 5.23 percent or 3.35 to 67.40. The DAX volatility index, which measures the implied volatility of DAX options, was down 13.25 percent to 18.73. Gold Futures for December delivery was down 0.70 percent or 10.65 to $1508.95 a troy ounce.
Elsewhere in commodities trading, Crude oil for delivery in September rose 2.23 percent or 1.14 to hit $52.23 a barrel, while the October Brent oil contract rose 1.96 percent or 1.10 to trade at $57.33 a barrel. EUR/USD was up 0.08 percent to 1.1206, while EUR/GBP rose 0.08 percent to 0.9227. The US Dollar Index Futures was down 0.00 percent at 97.343.