World stocks up on bargain-hunting, Trump tax plan progress

AFP, NEW YORK: Global stock markets rebounded Thursday as investors snapped up bargains after the recent

sell-off, encouraged by solid US earnings and progress in Washington on President Donald Trump’s tax cut plan.

After Tokyo recovered from a six-day losing streak and European indices pushed higher, US stocks rallied, with the Nasdaq jumping 1.3 per cent to finish at a fresh all-time high.

The day before, global equity markets had dropped, hit by sliding oil prices and doubts over the US tax cut plan’s prospects, as well as profit-taking as investors worried that stocks were overvalued.

“Equities are benefiting from a return of risk appetite following a two-week sell-off,” said Accendo Markets analyst, Mike van Dulken.

After months of anticipation, the lower house of Congress approved Trump’s landmark tax overhaul 227 to 205, with all Democrats and a handful of Republicans voting against.

Investors applauded the progress and overlooked the myriad controversies that have split Senate Republicans and are expected to result in a much thornier debate in the upper chamber.

Phil Davis of PSW Investments warned that “investors are jumping the gun.”

“The risk is the Senate,” Davis said. “If they lose one more person (in the Senate), this thing is dead.”

At the end of the session in Europe, the Frankfurt and Paris stock markets were each up by more than half a percent.

The gains in London were more modest, dampened by lackluster UK retail sales data.

In commodities trading, oil prices dipped further after plummeting this week when energy watchdog the IEA cut its forecast for crude consumption for next year.

That has been compounded by official data pointing to a rise in US stockpiles and the possibility that an OPEC-Russia output cut may not be extended.

Among individual companies, Wal-Mart surged 10.9 per cent after boosting its full-year profit forecast, as US comparable stores rose 2.7 per cent, propelled in part by higher sales in hurricane-affected regions.

Cisco, another Dow component, rose 5.2 per cent after reporting that quarterly earnings rose 3.1 per cent to $2.4 billion, besting analyst expectations.

German industrial heavyweight Siemens climbed 1.1 per cent after announcing it planned to cut 6,900 jobs, around half of them in Germany, where Siemens also plans to close sites in the country’s economically weaker east. Union leaders vowed to fight the plan.

World stocks up on bargain-hunting, Trump tax plan progress

AFP, NEW YORK: Global stock markets rebounded Thursday as investors snapped up bargains after the recent sell-off, encouraged by solid US earnings and progress in Washington on President Donald Trumps tax cut plan. After Tokyo recovered from a six-day losing streak and European indices pushed higher, US stocks rallied, with the Nasdaq jumping 1.3 per cent to finish at a fresh all-time high. The day before, global equity markets had dropped, hit by sliding oil prices and doubts over the US tax cut plans prospects, as well as profit-taking as investors worried that stocks were overvalued. Equities are benefiting from a return of risk appetite following a two-week sell-off, said Accendo Markets analyst, Mike van Dulken. After months of anticipation, the lower house of Congress approved Trumps landmark tax overhaul 227 to 205, with all Democrats and a handful of Republicans voting against. Investors applauded the progress and overlooked the myriad controversies that have split Senate Republicans and are expected to result in a much thornier debate in the upper chamber. Phil Davis of PSW Investments warned that investors are jumping the gun. The risk is the Senate, Davis said. If they lose one more person (in the Senate), this thing is dead. At the end of the session in Europe, the Frankfurt and Paris stock markets were each up by more than half a percent. The gains in London were more modest, dampened by lackluster UK retail sales data. In commodities trading, oil prices dipped further after plummeting this week when energy watchdog the IEA cut its forecast for crude consumption for next year. That has been compounded by official data pointing to a rise in US stockpiles and the possibility that an OPEC-Russia output cut may not be extended. Among individual companies, Wal-Mart surged 10.9 per cent after boosting its full-year profit forecast, as US comparable stores rose 2.7 per cent, propelled in part by higher sales in hurricane-affected regions. Cisco, another Dow component, rose 5.2 per cent after reporting that quarterly earnings rose 3.1 per cent to $2.4 billion, besting analyst expectations. German industrial heavyweight Siemens climbed 1.1 per cent after announcing it planned to cut 6,900 jobs, around half of them in Germany, where Siemens also plans to close sites in the countrys economically weaker east. Union leaders vowed to fight the plan.