Get breaking news alerts via email

Click here to manage your alerts
World stocks gain on hopes of U.S. bounce
International » Markets in Europe, Asia see poor U.S. first quarter as simply a blip.
First Published Jun 26 2014 09:36 am • Last Updated Jun 26 2014 09:36 am

Hong Kong • Asian stock markets rose Thursday while European gains were more restrained, as investors largely brushed off a poor quarterly U.S. economic report as a blip and instead factored in rebounding growth as policymakers maintain ultralow interest rates.

Investors were unfazed by the U.S. government’s report that the world’s biggest economy shrank 2.9 percent in the first quarter, the fastest contraction since the global crisis five years ago.

Join the Discussion
Post a Comment

The downturn, due to a severe winter that closed factories, disrupted shipping and kept Americans away from malls, was seen as temporary, with growth rebounding sharply since spring. Investors may also be betting that it gives policymakers a reason not to raise rates.

"Weak U.S. data released overnight means the Fed will be in no hurry to tighten its policy stance," strategists at Credit Agricole CIB said in a report. "Firmer U.S. equities will provide a favorable backdrop for trading" in Asia.

The quarterly U.S. economic data was "undoubtedly a horrible number, [however] we should see a nice snap back in the second quarter; and this is far more important," said Craig Weston, chief market strategist at IG Markets in Melbourne.

He added, "Asia has largely celebrated the weak U.S. GDP, with yield stocks doing nicely, notably in Australia," where the S&P/ASX 200 rose 1.2 percent to 5,464.30.

In early European trading, France’s CAC 40 edged up 0.2 percent 4,467.07 while Germany’s DAX inched 0.1 percent higher to 9,874.59. The FTSE 100 index of leading British companies was little changed at 6,734.26.

U.S. stocks were poised for a flat open after inching higher the previous day. Dow futures were little changed at 16,770.00 while broader S&P 500 futures slipped 0.1 percent to 1,947.30.

Japan’s Nikkei 225 added 0.3 percent to close at 15,308.49 while South Korea’s Kospi added 0.7 percent to 1,995.05.

Hong Kong’s Hang Seng jumped 1.5 percent to 23,197.83 while the Shanghai Composite Index in mainland China gained 0.7 percent to 2,036.68.

story continues below
story continues below

In energy trading, the price of U.S. benchmark crude for August delivery rose 1 cent to $106.51 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 47 cents to settle at $106.50 on Wednesday.

In currencies, the dollar slipped to 101.75 Japanese yen from 101.81 yen in late trading Wednesday. The euro fell to $1.3617 from $1.3627.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.