While you were sleeping: China, Germany deliver

Wall Street rose, stemming a three-day slide, as the latest exports data from China and Germany surpassed expectations, bolstering optimism about the economic recovery.

China's exports climbed 5.1 percent in July from a year ago, well above the 2 percent increase predicted in a Bloomberg News survey and also comfortably above the 3 percent forecast in a Reuters poll. It is a welcome sign of strength in the world's second-largest economy.

That was good news for commodities, too, boosting prices of copper, platinum, gold and silver.

"China is stabilising and growing," Stephen Wood, the New York-based chief market strategist who helps oversee about $US237 billion at Russell Investments, told Bloomberg News. "Some of the data is confirming that softer landing."

The latest US economic data was also encouraging, as weekly jobless claims rose less than expected to 333,000 last week.

American retailers offered further reasons for cautious optimism.

Ten of the 11 retailers that still release monthly sales figures for stores open at least a year reported a combined 4.2 percent gain, compared to the 4.4 percent increase analysts expected, according to Thomson Reuters.

In late afternoon trading in New York, the Dow Jones Industrial Average rose 0.27 percent, the Standard & Poor's 500 Index gained 0.48 percent and the Nasdaq Composite Index advanced 0.52 percent. Gains in shares of Microsoft, last up 2.4 percent, and Caterpillar, last up 2.3 percent, propelled the Dow higher.

Better-than-expected earnings helped, too. Shares of Tesla Motors soared, last up 14.6 percent, after the maker of electric cars reported a surprise quarterly profit yesterday.

Also benefiting from a solid earnings report card was Groupon, boosting its shares 22.7 percent.

In Europe, equities advanced. The UK's FTSE 100 Index rose 0.28 percent, France's CAC 40 gained 0.6 percent, while Germany's DAX added 0.7 percent.

Earnings of Deutsche Telecom and Commerzbank beat expectations, helping to bolster their respective shares and overall sentiment.

So far in Europe's earnings season, 56 percent of STOXX Europe 600 firms have met or beaten profit forecasts, according to Thomson Reuters StarMine data.

More good news from Germany, Europe's largest economy, came in the form of export data.

German exports rose 0.6 percent in June, after declining a revised 2 percent in May which was less than originally estimated.

"Against the background of a gradually recovering euro area, German trade is expected to gain impetus in the summer months," Stefan Kipar, an economist at BayernLB in Munich, told Bloomberg News.

(BusinessDesk)

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1 Comment & Question

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Nice to see you reporting on the positive news coming out of Germany, thank you!
Monique Surges
Chief Executive Officer
New Zealand German Business Association Inc

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NZ Market Snapshot

Forex

Sym Price Change
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AUD 0.8936 -0.0023 -0.26%
EUR 0.6192 -0.0024 -0.39%
GBP 0.4883 -0.0011 -0.22%
HKD 6.0727 -0.0173 -0.28%
JPY 84.6350 0.5130 0.61%

Commods

Commodity Price Change Time
Gold Index 1241.1 -7.450 2014-10-22T00:
Oil Brent 84.7 0.320 2014-10-22T00:
Oil Nymex 80.5 -1.960 2014-10-22T00:
Silver Index 17.2 -0.318 2014-10-22T00:

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Symbol Open High Last %
NZX 50 5279.7 5299.9 5279.7 0.25%
NASDAQ 4427.4 4462.0 4382.8 1.74%
DAX 8873.5 9059.8 8940.1 1.16%
DJI 16468.1 16680.2 16461.3 1.19%
FTSE 6399.7 6430.3 6399.7 0.36%
HKSE 23296.0 23397.2 23404.0 -0.30%
NI225 15093.8 15232.5 15195.8 -0.37%