Global Stocks Mostly Higher Tuesday 03/31 05:18
Global shares were mostly higher after China reported strong manufacturing
data, extending an overnight rally on Wall Street.
TOKYO (AP) -- Global shares were mostly higher after China reported strong
manufacturing data, extending an overnight rally on Wall Street.
France's CAC 40 added 1.5% in early trading to 4,443.47. Germany's DAX
gained 2.5% to 10,063.41, while Britain's FTSE 100 jumped 2.2% to 5,685.74.
U.S. shares were set to drift higher, with Dow futures edging up 0.6% to
22,460.20. S&P 500 futures also rose, by 0.7% to 2,645.18.
Still, it was a welcome sign of resilience.
Japan's benchmark Nikkei 225 rose in morning trading but reversed course to
dip nearly 0.9%, finishing at 18,917.01. Australia's S&P/ASX 200 also fell
back, losing 2.0% to 5,076.80, while South Korea's Kospi picked up 2.2% to
1,754.64. Hong Kong's Hang Seng stood at 23,603.48, up 1.9% and the Shanghai
Composite inched up 0.1% to 2,750.30.
India's Sensex jumped 3.6% to 29,467.39. Shares rose in Thailand, Indonesia
An official survey showed China's manufacturing rebounded in March as
authorities relaxed anti-disease controls and allowed factories to reopen. But
an industry group warned Tuesday that the economy has yet to fully recover.
The purchasing managers' index issued by the Chinese statistics bureau and
an official industry group rose to 52 from February's record low of 35.7 on a
100-point scale on which numbers above 50 show activity increasing.
The overnight rally on Wall Street tacked more gains onto a recent upswing
for the market, which is coming off the best week for the S&P 500 in 11 years,
albeit after falling into bear market territory. Optimism is budding that the
worst of the selling may be approaching, but markets around the world are still
wary as leaders work to nurse their economies through the pandemic. The S&P 500
remains 22.4% below its record set last month, and oil tumbled to an 18-year
"Despite some respite for markets overnight, uncertainty remains as the
spread of the COVID-19 virus continues," said Zhu Huani at Mizuho Bank, warning
against too much optimism.
"Central banks and authorities continue to step up measures to support the
Sentiment was brightened by news of potential developments in the fight
against the coronavirus outbreak.
Johnson & Johnson leaped 8% after saying it expects to begin human clinical
studies on a vaccine candidate for COVID-19 by September. Abbott Laboratories
jumped 6.4% after saying it has a test that can detect the new coronavirus in
as little as five minutes.
Stocks jumped last week after the Federal Reserve promised to buy as many
Treasurys as it takes to get lending markets running smoothly and Capitol Hill
reached a deal on a $2.2 trillion rescue package for the economy.
"The market wants to see everything line up, and last week everything lined
up," said Nela Richardson, investment strategist at Edward Jones, referring to
the unprecedented aid from the Fed and Congress.
Now, she said, President Donald Trump also appears to be in sync with health
experts about the need to restrict the economy to slow the spread of the virus.
Trump on Sunday extended social-distancing guidelines, which recommend against
group gatherings larger than 10, through the end of April. Earlier, he had said
he wanted the economy open by Easter.
"Now that message is in line," said Richardson. "All these things line up
coming into this week, and that's why you saw strong performance last week
Economists expect a number of weak reports on the economy to come in through
the week. The lowlight will likely be Friday's jobs report, where economists
expect to see the steepest drop in the nation's payrolls since the Great
The number of known infections around the world has topped 780,000,
according to Johns Hopkins University. The United States has the highest number
in the world, more than 160,000.
Most people who contract COVID-19 have mild or moderate symptoms, which can
include fever and cough. But for others, especially older adults and people
with existing health problems, the virus can cause pneumonia and require
More than 37,000 have died worldwide due to COVID-19, while more than
160,000 have recovered.
ENERGY: Benchmark U.S. crude added $1.10 to $21.19 a barrel. It fell 6.6% to
$20.09 a barrel on Monday, after touching its lowest price since 2002. Oil
started the year above $60 and has plunged on expectations that a weakened
economy will burn less fuel. The world is awash in oil, meanwhile, as producers
continue to pull more of it out of the ground.
Brent crude, the international standard, picked up 72 cents to $27.14 per
CURRENCIES: The dollar was trading at $108.34, up from $107.76 on Monday.
The euro was little changed, at $1.0996 from $1.0995.