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Stocks Bounce Back After a Week of Selling Stocks Bounce Back Around the World After a Week of Selling
(about 1 hour later)
HONG KONG — After more than a week of gloom, global investors are signaling to Wall Street that it may be time to lighten up. Wall Street started Friday by shaking off an ugly six-day stretch of trading, as stocks opened higher with the help of two solid earnings reports from the financial sector.
Stocks rose broadly on Friday, rebounding from a wave of selling that had hit markets in Asia, Europe and the United States. Technology stocks, which had been hit particularly hard during the sell-off, rose sharply. The Nasdaq index gained more than 2 percent in early trading while the Standard & Poor’s 500-stock index rose as much as 1.5 percent.
In Asia, stocks in China and Japan finished modestly higher, while markets in Hong Kong and Taiwan rose more than 2 percent. In Europe, major share indexes in Britain, France and Germany were up less than 1 percent in morning trading. In the United States, the Standard & Poor’s 500 benchmark rose more than 1.5% in early trading. The gains in the United States came after rebounds in Asian and European markets. Stocks in China and Japan finished modestly higher, and markets in Hong Kong and Taiwan rose more than 2 percent. Major indexes in Britain, France and Germany were up less than 1 percent in early trading.
Trade data from China appeared to help. On Friday, it said exports rose more than expected in September thanks to growing shipments to Europe and stable trade with the United States despite the escalating trade war. The data offered a reminder that global demand remains strong despite broad concerns about rising interest rates and the worsening trade war between Washington and Beijing, even though both could bite in the future. Trade data from China appeared to be calming investors’ anxiety. On Friday, China said exports had risen more than expected in September as a result of increases in shipments to Europe and stable trading with the United States despite escalating tensions.
The data was a reminder that global demand remains strong even amid broad concerns about rising interest rates and the strain between Washington and Beijing.
“The trade-oriented industries are still vulnerable to further escalation,” Julia Wang, an economist with HSBC, said in a research note.“The trade-oriented industries are still vulnerable to further escalation,” Julia Wang, an economist with HSBC, said in a research note.
Skittish investors have been focusing on a host of global concerns that include rising borrowing costs in the United States, escalating trade tensions, the outlook for corporate earnings and sanctions on Iran, which could push the price of oil up. In the United States, JPMorgan Chase and Citigroup — the country’s largest and third-largest banks by assets — reported better-than-expected third-quarter profits, sending their share prices higher.
Investors have also been concerned about the strength of corporate earnings and the effect of United States sanctions on Iran, which could push up the price of oil.
“We all know that markets react emotionally sometimes, and there is plenty to be emotional about,” Christopher Smart, head of macroeconomic and geopolitical research at Barings, wrote in a note to investors.“We all know that markets react emotionally sometimes, and there is plenty to be emotional about,” Christopher Smart, head of macroeconomic and geopolitical research at Barings, wrote in a note to investors.
Mr. Smart listed economic events in Italy, Brazil and hawkish comments from Mike Pence, the United States vice president, about China as among the concerns gripping the markets.
“Oh, and the president said the Fed chair was ‘crazy,’” Mr. Smart added, referring to President Trump’s comments about the Federal Reserve policy to raise interest rates as “ridiculous,” “loco” and “crazy.”
Early in the day China’s stock market was poised for broad-based selling and dropped by as much as 2 percent before coming back up. Chinese technology stocks, which suffered badly in the recent sell-off, led the resurgence.