Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

World stocks rise ahead of US earnings

Send a link to a friend

[October 19, 2009]  LONDON (AP) -- European and Asian stocks rose Monday as investors looked ahead to U.S. corporate earnings reports with increased optimism over the strength of the economic recovery.

RestaurantA brighter outlook for stocks and the economy pushed oil prices to a new 2009 high over $79 a barrel and the dollar down against the yen and euro.

Germany's DAX stock index rose 1.2 percent to 5,809.30, Britain's FTSE 100 rose 1.1 percent at 5,246.25 and France's CAC-40 gained 1.1 percent at 3,869.03.

Most of Asia's markets recouped falls from early in the day and Wall Street was expected to open higher. Dow industrials futures were up 39 points at 9,963 and Standard & Poor's 500 futures were up 5.50 points at 1,087.50.


Markets were shaken by relatively weak earnings by General Electric and Bank of America on Friday, but sentiment soon recovered as investors expected companies like technology bellwethers Texas Instruments and Apple Inc. to deliver good results on Monday.

"It is worth noting that 62 companies have reported earnings in the S&P 500 and 79 percent have beaten forecasts, boosting risk appetite," said Stuart Bennett, analyst at Calyon in London.

"A lot of good news appears to be priced in however, suggesting some scope for disappointment. Nonetheless, the overall tone to risk appetite remains positive despite the occasional setback," Bennett said.

Later in the week will see earnings releases from the likes of McDonald's Corp., Coca-Cola Co., Yahoo Inc. and Microsoft.

On Monday, Switzerland-based engineering company ABB Group said Monday it expected third-quarter net profit of around $1 billion, up 8 percent on the year but weighed by provisions for higher taxes and one-time costs.

In Britain, National Express Plc shares jumped 8.6 percent after Stagecoach Plc said it was considering a takeover offer. A separate bid for the transportation company was dropped on Friday, causing the stock to slump 30 percent and making it more attractive to bargain-hunters.

Oil and mining stocks were also enjoying strong gains, helped by a jump in oil prices, itself boosted by the depreciation of the dollar -- being priced in dollars, commodities become cheaper when the U.S. currency weakens.

Elsewhere, investors were also looking for clues about growth in China -- which has helped bolster markets this year -- with Thursday's release of figures about manufacturing, retail sales, investment and economic growth.

[to top of second column]

Nursing Homes

"People believe the growth will be still strong, and that could continue to support the markets in the short term," said Peter Lai, investment manager at DBS Vickers in Hong Kong. Still, he cautioned that momentum seems to be slowing after the recent advance in markets.

China's Shanghai index rose 2.1 percent to 3,038.27 as a top economic official said the country would surpass its growth target of 8 percent this year.

"Achieving a growth rate of 8 percent for the year is basically no problem," Xiong Bilin, a deputy director of the National Development and Reform Commission, told reporters in Beijing.


In Hong Kong, the Hang Seng closed up 270.56 points, or 1.2 percent, to 22,200.46. Benchmarks in South Korea and Taiwan rose 0.5 percent.

In Japan, the Nikkei 225 shed 21.05 points, or 0.2 percent, to 10,236.51 while Australian shares dropped 0.9 percent. India's market was closed for a public holiday.

The benchmark oil contract for November delivery rose as much as 52 cents to $79.05 a barrel but later fell back and was up 4 cents at $78.57 in European trade. It added 95 cents on Friday.

The dollar lost ground to 90.47 yen from 91 yen while the euro climbed to $1.4934 from $1.4891.

[Associated Press; By CARLO PIOVANO]

Associated Press writer Jeremiah Marquez in Hong Kong contributed to this report.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Recent articles

Back to top


News | Sports | Business | Rural Review | Teaching & Learning | Home and Family | Tourism | Obituaries

Community | Perspectives | Law & Courts | Leisure Time | Spiritual Life | Health & Fitness | Teen Scene
Calendar | Letters to the Editor