Sunday July 5th, 2020 12:37AM

Global markets steady as investors gauge length of recovery

By The Associated Press
Related Articles
  Contact Editor

TOKYO (AP) — World stock markets were steady on Tuesday as investors weighed evidence of an economic recovery against a rise in reported coronavirus contagions in some countries.

Markets were buoyed somewhat by stronger than expected manufacturing data from China, the world's second largest economy. But other new economic indicators were mixed.

France's CAC 40 rose 0.3% to 4,960, while Germany's DAX gained 0.7% to 12,318 after new data showed an uptick in eurozone inflation. The annual rate edged up to 0.3% in June from 0.1% the month before, largely due to higher energy prices, with the cost of many goods still weighed down by a lack of demand.

Britain's FTSE 100 lost 0.4% to 6,204. U.S. shares were set for a steady open, with Dow and S&P 500 futures roughly unchanged.

A survey of China factory managers released Tuesday was better than expected, suggesting the global economy may be on the upswing after bottoming out at the height of shutdowns in April-May, analysts said.

The monthly purchasing managers’ index released by the national statistics agency and an industry group rose to 50.9 from May’s 50.6 on a 100-point scale on which numbers above 50 show activity expanding.

China, where the coronavirus pandemic began in December, was the first economy to reopen. Factory and other activity is reviving but global demand is weak and Chinese consumers, worried about losing jobs, are reluctant to spend.

Forecasters say global demand for Chinese goods is uncertain as infections rise in the United States, Brazil and some other countries.

Increases in production and new orders point to a rebound in foreign demand, though export demand remains much weaker than overall new orders, said Martin Rasmussen, an economist at Capital Economics.

Further clouding the outlook, Japan reported a plunge in factory output in May, and Spain released statistics showing that its economy contracted 5.2% during the first three months of the year from the previous quarter.

The mixed signals have investors swinging between optimism and gloom.

“These will be important questions to answer as equity markets hang in a delicate balance at present,” Jingyi Pan, market strategist at IG, said in a commentary.

Japan’s benchmark Nikkei 225 gained 1.3% to finish at 22,288.14. South Korea’s Kospi gained 0.7% to 2,108.33, while Australia’s S&P/ASX 200 rose 1.4% to 5,897.90. Hong Kong’s Hang Seng gained 0.5% to 24,427.19. The Shanghai Composite closed at 2,984.67, up 0.8%.

Countries across the world are in various stages of the pandemic. Some will not resume normal economic activity for some time because of continuing restrictions and changing consumer behavior, analysts say.

The worry is that worsening outbreaks in the U.S. and elsewhere could choke off budding improvements in economies as governments ease up on pandemic restrictions.

Benchmark U.S. crude oil fell 55 cents to $39.15 in electronic trading on the New York Mercantile Exchange. It rose $1.21 to $39.70 a barrel on Monday. Brent crude oil for August delivery slipped 52 cents to $41.33 a barrel.

The dollar rose to 107.76 Japanese yen from 107.57 yen. The euro cost $1.1193, down from $1.1238.

___

AP Business Writer Joe McDonald in Beijing contributed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Global markets steady as investors gauge length of recovery
World shares are steady as investors weigh evidence of an economic recovery against a rise in reported coronavirus contagions in some countries
8:05AM ( 10 minutes ago )
Vatican prosecutors seize data from St. Peter's Basilica
Vatican prosecutors have ordered the seizure of documents and computers from the administrative offices of St. Peter’s Basilica in an apparently new investigation into financial irregularities in the Holy See
7:47AM ( 28 minutes ago )
AP sources: White House aware of Russian bounties in 2019
Top officials in the White House were aware in early 2019 of classified intelligence indicating Russia was secretly offering bounties to the Taliban for the deaths of Americans, a full year earlier than has been previously reported
7:36AM ( 38 minutes ago )
Associated Press (AP)
Businesses chafe in Leicester as UK city faces new lockdown
Stores are closing their doors and schools are sending children home in the English city of Leicester, where the government imposed a local lockdown to contain a spike in coronavirus cases
6:59AM ( 1 hour ago )
The Latest: US envoy to Afghanistan not going to Kabul
The U.S. State Department says the American peace envoy to Afghanistan, Zalmay Khalilzad, will not be going to the Afghan capital, Kabul, while in the region on his latest peace mission because of the dangers presented by the coronavirus and instead will video conference with Afghan leaders
6:55AM ( 1 hour ago )
China approves contentious Hong Kong national security law
China has approved a contentious national security law that will allow authorities to crack down on subversive and secessionist activity in Hong Kong
6:54AM ( 1 hour ago )
AP Business
The Latest: UK OKs resumption of hydroxychloroquine trial
Britain’s medical regulatory agency has approved the resumption of a trial testing whether hydroxychloroquine, the malaria drug favored by U.S. President Donald Trump, might help prevent health workers from contracting the coronavirus
5:19AM ( 2 hours ago )
Norwegian Air cancels order for 97 Boeing aircraft
Low-cost carrier Norwegian Air Shuttle says it has cancelled its 97 outstanding orders for planes from U.S. manufacturer Boeing
4:50AM ( 3 hours ago )
The Latest: Spain GDP shrinks 5.2% in 1st 3 months of year
Spanish official statistics show that the country’s gross domestic product contracted 5.2% during the first three months of the year compared to the previous quarter, the biggest drop in at least half a century
4:46AM ( 3 hours ago )
AP Business - Economy
France, Germany push for rapid EU recovery plan agreement
The leaders of Germany and France say they will use their influence as European Union powerhouses to help negotiate a rapid agreement on a coronavirus recovery package for the 27-nation bloc that leaves no country behind
2:44PM ( 17 hours ago )
Wall Street climbs, claws back a chunk of last week's losses
Stocks are climbing on Wall Street Monday, clawing back more than a third of their losses from last week
1:29PM ( 18 hours ago )
Wall Street climbs to claw back some of last week's losses
Stocks are rising in morning trading on Wall Street Monday, clawing back some of the ground they lost last week
11:00AM ( 21 hours ago )
AP Business - Financial Markets
Vatican prosecutors seize data from St. Peter's Basilica
Vatican prosecutors have ordered the seizure of documents and computers from the administrative offices of St. Peter’s Basilica in an apparently new investigation into financial irregularities in the Holy See
7:47AM ( 29 minutes ago )
AP sources: White House aware of Russian bounties in 2019
Top officials in the White House were aware in early 2019 of classified intelligence indicating Russia was secretly offering bounties to the Taliban for the deaths of Americans, a full year earlier than has been previously reported
7:36AM ( 39 minutes ago )
Belgian king expresses regret for violence in colonial rule
For the first time in Belgium’s history, a reigning king has expressed regret for the violence carried out by the former colonial power when it ruled over what is now the Democratic Republic of the Congo
7:33AM ( 43 minutes ago )
India bans TikTok, other Chinese apps amid border standoff
India has banned dozens of Chinese apps amid a military standoff in the remote Karakoram mountain border region
7:20AM ( 56 minutes ago )
Changes in military recruiting may endure after pandemic
COVID-19 has had a dramatic impact on military recruiting, shuttering enlistment stations around the country and forcing thousands of recruiters to woo potential soldiers online
7:18AM ( 58 minutes ago )