Global Stocks Rise on Weak US Earnings
TOKYO (AP) -- Global shares rose Thursday after weak economic figures in the U.S. reinforced expectations the Federal Reserve will remain cautious over raising interest rates.
KEEPING SCORE: Germany's DAX rose 0.9 percent to 10,002.67 and Britain's FTSE 100 advanced 0.8 percent to 6,318.16. The French CAC40 also gained 0.8 percent to 4,647.14. U.S. markets looked set for an upbeat start, with Dow futures up 0.5 percent and S&P futures 0.6 percent higher.
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U.S. DATA: Weak earnings guidance from Wal-Mart caused its stock to slump $6.70, or 10 percent, to $60.03, its worst one-day decline since January 1988. Meanwhile, a Federal Reserve report on Wednesday showed that factory output was sluggish in the late summer, while a separate report on retail sales indicated that Americans are still spending cautiously.
ANALYST VIEW: "With the data clearly slowing and three to four Fed officials now firmly against lift-off this year, markets think the event increasingly unlikely," DBS said in a commentary, one of many suggesting interest rates will not be raised soon.
ASIA'S DAY: Japan's Nikkei 225 rose 1.2 percent to 18,096.90 while Hong Kong's Hang Seng index jumped 2 percent to 22,888.17. The South Korean Kospi added 1.2 percent to 2,033.27and Australia's S&P/ASX 200 gained 0.6 percent to 5,230.00. The Shanghai Composite Index was up 2.3 percent at 3,338.07. Shares in Southeast Asia also were higher.
CURRENCIES: The dollar fell to 118.38 yen from 118.83 in the previous session. The euro also slipped to $1.1435 from $1.1474.
ENERGY: The price of benchmark U.S. crude fell 50 cents to $46.14 a barrel in electronic trading on the New York Mercantile Exchange. It fell 2 cents to close at $46.64 a barrel on Wednesday. Brent crude, used to price international oils, lost 17 cents to $49.52 a barrel in London.
(BAS)