Global Stocks Follow Wall Street Higher07/02 05:53
Global stock markets and Wall Street futures rose Thursday as hopes for
development of a coronavirus vaccine competed with concerns about rising U.S.
BEIJING (AP) -- Global stock markets and Wall Street futures rose Thursday
as hopes for development of a coronavirus vaccine competed with concerns about
rising U.S. infections.
London and Frankfurt opened higher. Shanghai, Tokyo, Hong Kong and Australia
Investors were encouraged after Pfizer and BioNtech announced preliminary
data from a vaccine test, one of a series being carried out by global
At the same time, the populous American states of California and Texas
reported daily record highs in new cases.
"Vaccine hopes, while welcome, fall short of guaranteeing a V-shaped
recovery," Mizuho Bank said in a report.
In early trading, the FTSE 100 in London rose 0.9% to 6,213.01 and
Frankfurt's DAX gained 1.8% to 12,486.31. The CAC 40 in Paris advanced 1.4% to
On Wall Street, the future for the benchmark Standard & Poor's 500 index was
up 0.7% and that for the Dow Jones Industrial Average was up 1%.
On Wednesday, the S&P 500 rose 0.5%, boosted by gains for technology
companies. The Dow lost 0.3% while the Nasdaq composite climbed 1%.
In Asia, the Shanghai Composite Index rose 2.1% to 3,090.57 and the Nikkei
225 in Tokyo added 0.1% to 22,145.96. The Hang Seng in Hong Kong gained 2.8% to
Seoul's Kospi advanced 1.4% to 2,135.37 while the S&P-ASX 200 in Sydney
gained 1.7% to 6,032.70. India's Sensex added 1.6% to 35,966.50. New Zealand,
Singapore and Jakarta also rose.
Stock markets around the world roared back last quarter on hopes economies
are pulling out of their deepest slump since the 1930s. Analysts warn, however,
that prices might be rising too far and too fast to be supported by economic
activity when infections are rising in the United States, Brazil and some other
In the United States, a report on manufacturing showed activity returned to
growth in June, a much better reading than the contraction economists expected.
Earlier, a separate report suggested private employers hired more workers
than they cut in June.
"It is still a guessing game as to how the COVID-19 lingering impact will
sustain," Jingyi Pan of IG said in a report.
In China, two surveys this week showed manufacturing improved in June,
adding to signs of a gradual recovery.
A similar survey for the 19-country eurozone showed manufacturing almost
growing again after widespread shutdowns.
Analysts said that while the data pointed in the right direction, they show
that an economic recovery from the pandemic will be slow.
In energy markets, benchmark U.S. crude gained 34 cents to $40.16 per barrel
in electronic trading on the New York Mercantile Exchange. The contract rose 55
cents to settle at $39.82 on Wednesday. Brent crude, the international price
standard, gained 36 cents to $42.39 per barrel in London. The contract rose 76
cents the previous session to $42.03 a barrel.
The dollar declined to 107.36 yen from Wednesday's 107.49 yen. The euro rose
to $1.1301 from $1.1244.