In New York, before the markets opened, the Dow Jones industrial average and the broader S&P 500 index rose 0.1%. (Photo: The Canadian Press)
MARKET REVIEWS. World markets improved on Friday morning, after the announcement of signs indicating a stabilization of the Chinese economy.
Stock market indices at 7:30 a.m.
London added 0.9% at the start of the session in Europe, Frankfurt 1.1% and Paris a robust 1.5%.
HAS new Yorkbefore the markets opened, the average Dow Jones industrial stocks rose by 0.2% and the broader index S&P 500 of 0.1%.
In Asia, the Nikkei 225 jumped 1.1% to Tokyo. The scholarship of Shanghai fell by 0.3% and the Hang Seng rose 0.8% to Hong Kong. Sydney added 1.3% and Seoul 1.1%.
On the New York Commodity Exchange, the price of oil took 29 US cents to US$90.45 per barrel.
A series of economic indicators better than expected for the month of August gives hope that “the worst of the cyclical slowdown” of the second largest economic power in the world, China, “is probably behind us”, comments Xavier Chapard, member of the The Postal Bank research and strategy team.
In detail, industrial production accelerated sharply in August (+4.5% year-on-year), at a much faster pace than in July (+3.7%) and higher than analysts’ expectations (+3 .9%).
Retail sales, the main indicator of household consumption, increased last month by 4.6% year-on-year, according to official figures from the National Bureau of Statistics (NBS). This is its first acceleration since June and its strongest progression since May.
This series of data “would be almost + perfect + if those concerning investment, which concern construction projects in urban and rural areas, had followed the movement”, however, nuance Alexandre Baradez, analyst from IG France.
Investment in fixed capital actually slowed to 3.2% year-on-year over the first eight months of the year. This is the fourth month of decline in this indicator.
On Wall Street, the futures contracts of the three main indices oscillated between -0.04% and +0.25% around 6:50 a.m., suggesting a hesitant opening after a close in the green on Thursday.
SoftBank Group shares gained 2.08% in Tokyo. Its subsidiary Arm, a British microprocessor giant, climbed nearly 25% on Thursday during its first trading session on Wall Street.
After the close on Wall Street, Arm, of which the Japanese group still owns around 90% of the capital, was valued at 65.2 billion dollars, and even 67.9 counting the shares allocated to employees and managers.
Europe: luxury on the rise
Values in the luxury sector were trending upwards throughout Europe, supported by Chinese indicators.
In Paris, LVMH (LVMH.TI) jumped 3.64%, Kering (PPRUY) of 2.65% and Hermes (HESAY) by 2.04% around 6:45 a.m. In London, Burberry shares gained 2.79%. In Zurich, Richemont (CFRUY) was granted 3.72% and Swatch Group (SWGAY) 2.55%.
Oil prices remained slightly higher on Friday, driven by encouraging Chinese economic indicators which should support the country’s demand, while the market still fears a significant supply deficit in the fourth quarter.
Around 6:40 a.m., the barrel of North Sea Brentfor delivery in November, rose 0.25% to 93.93 US dollars ($US), after peaking at 94.63 US$ earlier in the session.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in October, gained 0.31% to US$90.44, shortly after touching US$91.15.
Since the beginning of July, WTI has jumped almost 26% and Brent more than 28%.