BEIJING – Global equity markets rose on Tuesday as investors eagerly awaited US earnings reports which are expected to show strong profits for banks.
London opened higher and Shanghai, Tokyo and Hong Kong advanced. Frankfurt refused.
Wall Street futures were down after the benchmark S&P 500 rose 0.3% on Monday to a new high, led by banking, communications and consumer-focused stocks.
“Wall Street braces for a volatile week” as traders decide “to bet on growth or cyclicals,” Oanda’s Edward Moya said in a report.
In early trading, the London FTSE 100 gained 0.3% to 7,145.81 while the Frankfurt DAX lost less than 0.1% to 15,778.61. The Parisian CAC fell 0.2% to 6,546.59.
On Wall Street, the S&P 500 future was down 0.1%. The Dow Jones Industrial Average was down less than 0.1%.
On Monday, the Dow Jones gained 0.4% and the Nasdaq composite gained 0.2%.
The indices have hit several highs lately in choppy trading.
In Asia, the Shanghai Composite Index rose 0.2% after Chinese export growth in June accelerated to 32.2% a year earlier.
This is an improvement from the 28% growth in May, customs data showed on Tuesday. Imports rose 36.7%, down from the explosive rise of 51% the previous month.
The Nikkei 225 in Tokyo gained 0.5% to 28,718.24 and the Hang Seng in Hong Kong gained 1.6% to 27,965.34.
The Kospi in Seoul was up 0.8% to 3,271.38 and the S & P-ASX 200 in Sydney was little changed at 7,332.10.
India’s Sensex index rose 0.7% to 52,741.66. New Zealand, Singapore and Bangkok won while Jakarta retreated.
Expectations for US corporate earnings are high as companies release quarterly results, led by Wall Street banks on Tuesday.
Profits are expected to increase 64% from the previous year, according to FactSet. It would be the strongest year-over-year growth since 2009 after the global financial crisis.
Shares have risen sharply over the past year as corporate earnings are expected to rebound once the pandemic is over. Without strong earnings, it will be difficult to justify high stock prices and record market valuations.
In energy markets, benchmark US crude rose 45 cents to $ 74.55 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 46 cents Monday to $ 74.10. Brent crude, the basis of international oil prices, added 47 cents to $ 75.63 a barrel in London. It lost 39 cents the previous session to $ 75.16 a barrel.
The dollar gained 110.37 yen against 110.34 yen. The euro fell to $ 1.1847 from $ 1.1858.
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