Nov 26, 2014 7:59 AM
World stocks rise as more US data on tap
The Associated Press
LONDON (AP) World stock markets mostly rose Wednesday as investors looked to more economic indicators out of the U.S. in the run up to the Thanksgiving holiday.
KEEPING SCORE: Britain's FTSE 100 rose 0.2 percent to 6,740.78 and Germany's DAX was up 0.6 percent at 9,917.10. France's CAC 40 shed 0.1 percent to 4,380.29. Wall Street was set for small gains. Dow and S&P 500 futures were both up almost 0.1 percent.
US GROWTH: Sentiment remained supported by a report showing the U.S. economy grew at a solid 3.9 percent annual rate in the July-September period, faster than the 3.5 percent that was initially reported, underlining its status as the only major economy that is gathering momentum. The revision was due to higher estimates of spending by consumers and businesses.
LOOKING AHEAD: Trading may become subdued ahead of the Thanksgiving holiday in the U.S. on Thursday. Before then, however, more indicators on the U.S. economy will get traders' attention. Figures are due on personal income and spending, durable goods orders and new home sales. "We expect most U.S. data ... to come in solid today," said Daniel Lee, analyst at Credit Agricole CIB.
ASIA SCORECARD: Hong Kong's Hang Seng rose 1.1 percent to 24,111.98 and Australia's S&P/ASX 200 added 1.2 percent to 5,396.20. Japan's Nikkei 225 dropped 0.1 percent to 17,383.58 while China's Shanghai Composite rose 1.4 percent to 2,604.35. Seoul's Kospi was little changed at 1,980.84.
CHINA JITTERS: The short-lived boost that stock markets got from China's interest rate cuts on Friday suggests growing pessimism about growth prospects for the world's No. 2 economy. Growth slipped to a five year low of 7.3 percent in the third quarter and indicators such as manufacturing have weakened since then. Some forecasters predict growth of less than 7 percent in China next year.
ENERGY: Oil prices were subdued after sliding on reports that representatives from Venezuela, Saudi Arabia, Mexico and Russian state oil giant OAO Rosneft failed on Tuesday to agree on any immediate plans to cut output. The oil producing nations were meeting ahead of OPEC's Thursday meeting. Benchmark crude was up 8 cents at $74.17 a barrel in electronic trading on the New York Mercantile Exchange. It dropped $1.69 to close at $74.09 in Nymex's Tuesday trading session.
CURRENCIES: The dollar edged down to 117.69 yen from 117.85 yen late Tuesday. The euro slid to $1.2475 from $1.2477 late Tuesday.