World Shares Mostly Higher Thursday 04/22 05:27
World shares rose Thursday after a broad advance on Wall Street as corporate
earnings suggested the economy was on the mend from the pandemic.
BANGKOK (AP) -- World shares rose Thursday after a broad advance on Wall
Street as corporate earnings suggested the economy was on the mend from the
Benchmarks rose in Paris, London, Tokyo and Hong Kong but fell in Shanghai.
U.S. futures edged lower.
Shares in Credit Suisse declined 3% after the bank reported "significant
losses" linked to a U.S.-based hedge fund and the Swiss financial regulator
said it was looking into possible penalties.
Two weeks ago, markets were rattled when the bank announced it was taking a
4.4 billion Swiss franc ($4.7 billion) charge linked to a default on margin
calls by U.S.-based Archegos Capital. Credit Suisse did not identify what it
called only a "US-based hedge fund" -- but the authority did.
Germany's DAX climbed 0.5% to 15,265.40 and the CAC 40 in Paris picked up
0.8% to 6,258.27. Britain's FTSE 100 rose 0.3% to 6,917.44. The future for the
S&P 500 fell less than 0.1%, as did the future contract for the Dow industrials.
In Asian trading, Japan's Nikkei 225 index added 2.4% to 29,188.17. Toshiba
Corp. jumped 3.5% amid reports that Bain Capital may be considering an
acquisition proposal as an earlier takeover bid by CVC Capital appears to have
Hong Kong's Hang Seng rose 0.5% to 28,755.34. In Seoul, the Kospi picked up
0.2% to 3,177.52. Sydney's S&P/ASX 200 jumped 0.8% to 7,055.40. The Shanghai
Composite index fell 0.2% to 3,465.11.
On Wednesday, the S&P 500 rose 0.9%, snapping a two-day slide, to close at
4,173.42. The Dow Jones Industrial Average gained 0.9% to 34,137.31. Both the
S&P 500 and Dow hit all-time highs on Friday. The technology-heavy Nasdaq added
1.2% to 13,950.22.
The Russell 2000 index of smaller company stocks, which has been outpacing
the broader market all year, led the way higher, climbing 2.3%, to 2,239.63.
Most of the companies in the benchmark index rose, with technology,
financial, and health care stocks accounting for a big share of the gains.
Tesla, Amazon and other companies that rely directly on consumer spending also
rose. Communication and utilities stocks fell.
Investors are weighing company earnings reports while keeping an eye on bond
yields, which eased lower. The yield on the 10-year Treasury slipped to 1.54%
"It seems like traders are taking every retracement in the stock market as
an opportunity to jump back in or double down on their riskier bets, and this
is pushing the European and the US stocks higher," Naeem Aslam of avatrade.com
said in a commentary.
Much of the market's focus over the next two weeks will be on individual
companies and the outcome of their quarterly results. About 80 members of the
S&P 500 are due to report results this week, as well as one out of every three
members of the Dow. On average, analysts expect quarterly profits across the
S&P 500 to climb 24% from a year earlier, according to FactSet.
Investors are looking to justify the market's advance this year, despite the
lingering pandemic and higher-than-normal unemployment. There are also signs of
COVID infections increasing outside the U.S. in major economies such as India
and Brazil once again.
In other trading, U.S. benchmark crude oil shed 56 cents to $60.79 per
barrel in electronic trading on the New York Mercantile Exchange. It lost $1.32
to $61.35 per barrel on Wednesday.
Brent crude, the international standard, declined 59 cents to $64.73 per
The U.S. dollar slipped to 108.00 Japanese yen from 108.08 yen late
Wednesday. The euro rose to $1.2039 from $1.2033.