TP: Global Stock Markets Rise on Hopes of Ukraine Ceasefire
BEIJING—Global stock markets rose Tuesday on improved U.S. housing sentiment and news of diplomatic efforts to broker a cease-fire in Ukraine.
Keeping Score: In midday trading, Germany’s DAX was up 0.9 percent to 9,325.74 and France’s CAC-40 rose 0.4 percent to 4,246.70. London’s FTSE 100 rose 0.4 percent to 6,766.69. Futures pointed to gains on Wall Street. Dow futures rose 0.2 percent to 16,826 and S&P 500 futures gained 0.1 percent to 1,969.50.
Asia’s Day: Tokyo’s Nikkei 225 added 0.8 percent to 15,449.79 and China’s Shanghai Composite Index rose 0.3 percent to 2,245.33. Taiwan’s Taiex climbed 1.1 percent while India’s Sensex gained 0.2 percent. Seoul, Sydney and Southeast Asian markets also rose.
Ukraine: Russian Foreign Minister Sergey Lavrov said issues related to sending a humanitarian convoy to Ukraine were resolved following weekend talks in Berlin with his counterparts from Ukraine, Germany and France. Germany’s Frank-Walter Steinmeier reported progress on “some issues,” though Lavrov said there was no decision on establishing a cease-fire between the government and pro-Russian rebels.
The Quote: “Markets started the week on a firm note as investors took positively the talks between Russia and Ukraine over the weekend even though no major breakthrough was reached,” said Gary Yau, analyst at Credit Agricole CIB.
Housing: A survey showed sentiment among U.S. home builders improved in August for a third month. Mizuho Bank analysts said in a note to clients that housing is “experiencing a broad-based revival,” which might bring forward plans by the Federal Reserve, which has cited housing as a concern, to raise interest rates.
Looking Ahead: The U.S. government was due to announce monthly inflation Wednesday and the Fed was due to release minutes on Wednesday from its July policy meeting. Fed Chairwoman Janet Yellen speaks Friday at an annual gathering of central bankers in Jackson Hole, Wyoming, and is expected to affirm her position that Fed should keep monetary policy loose to respond to a slack labor market.
Currencies: The dollar was up 0.1 percent on the day against the Japanese yen, at 102.67 yen, while the euro fell 0.1 percent to $1.3346. The pound was the biggest mover, slumping 0.5 percent against the dollar to $1.6644, after weak British inflation figures reduced the likelihood of interest rates increases in coming months.
Energy: Benchmark U.S. crude for September delivery was up 38 cents at $96.79 in electronic trading on the New York Mercantile Exchange. The contract shed 94 cents on Monday to $96.41, its lowest level since April, as fears of disruption in supplies from Iraq eased.
