Equity markets in Europe mostly rose Thursday, helped by late gains on Wall Street and more strong data on the German economy, though apprehension over slowing growth in the United States and its impact on the global recovery kept the advance in check.
The tentative rise snapped a lengthy losing streak, but investors remain cautious ahead of more indicators from the United States. Recent figures from China to the United States have pointed to the global economy slowing in the second half of the year and markets are now looking for signs of how deep the downturn will be.
“We should have some rebound, a little bounce, not much,” said Jackson Wong, vice president at Tanrich Securities in Hong Kong. “We are waiting for clues from the U.S.”
The FTSE 100 in London was up 0.5 percent while the DAX in Frankfurt was 0.3 percent higher. The CAC 40 in Paris was up 0.5 percent.
Japan’s Nikkei 225 advanced 0.7 percent to 8,906.48 after hitting a 16-month closing low the previous day, after the yen hit a fresh 15-year high against the dollar.
In Europe, gains were helped by another strong economic report from Germany. The GfK research institute said its forward-looking indicator for consumer confidence edged up to 4.1 points for September from the 4.0 points it registered in August.
That followed a report the day before showing a rise in German business confidence and provides more evidence that Europe’s largest economy is still enjoying relatively low unemployment and a recovery in demand. Still, analysts note that Germany has yet to implement its toughest austerity cuts and may yet feel the pinch of a drop in demand from big trading partners such as the United States and China.
Corporate news was also relatively good in Europe. Diageo, the world’s biggest spirits maker, said full-year profits rose 1.5 percent as sales in emerging markets fueled a rebound from a weak first half. Investors, however, had been expecting somewhat stronger results and let the shares slip 0.9 percent in London.
Futures indexes on Wall Street are pointing to a moderate rise at the open. But investors are also buying bonds, indicating they are cautious ahead of a weekly reading on unemployment. The Labor Department is expected to report initial claims for unemployment benefits fell slightly after touching a nine-month high a week earlier.
Elsewhere, China’s Shanghai Composite rose 0.3 percent to 2,603.48 points, Australia’s S&P/ASX 200 added 0.8 percent to 4,356.00, and India’s Sensex was 0.3 percent higher at 18,232.01.
Some Asian markets were unable to hold on to gains, however. Hong Kong’s Hang Seng flitted between positive and negative territory, finally closing 0.1 percent lower at 20,612.06 points. South Korea’s Kospi finished 0.3 percent down at 1,729.76.
In Tokyo, shares in exporters were mixed amid the yen’s movements; a higher currency makes their products more expensive on the international market. The Toyota Motor Corporation rose 0.6 percent and the Honda Motor Corporation was up 1.8 percent. The Sony Corporation, however, fell 0.4 percent.
