Global stocks are moving higher on Tuesday after the US earnings season began on a positive note and China signaled more stimulus measures in the near term to counter slowing growth. The investors looked ahead to the vote on British Prime Minister Theresa May’s Brexit deal later in the day. It is widely expected that May’s Brexit proposal will face a certain defeat in parliament.
The optimism in Asia spread to Europe and in mid-session, the major indexes are trading with moderate increases.
Asian markets recap
Major stock indexes in the Asia-Pacific region ended today’s trading session on a green territory in anticipation of the upcoming British Parliament vote for Brexit.
The Japanese blue-chip index Nikkei 225 added 195.59 points to its value and ended the day at 20,555.29 points. The shares of the automobile concern Toyota rose by 0.26%, while those of Honda and Mitsubishi added 0.55% and 0.16% respectively.
In South Korea, local index Kospi recorded a growth of 1.58% to 2,097.18 points.
Australian benchmark S&P ASX 200 rose by 41.20 points, or 0.71%, to 5,814.60 points, with financial sector companies adding 0.66% to their value.
On the Chinese markets, the index Shanghai Composite rose by 1.36% to 2,570.34 points, while the index Hang Seng rose by 461.43 points, or 1.75%, to 26,759.76 points.
The shares of Alibaba Group and Baidu Inc declined by 1.35% and 1.85% respectively. Similar is the case with Chinese energy companies – the securities of PetroChina Company and China Petroleum & Chemical Corporation declined by 1.61% and 0.54% respectively.
China is preparing to boost its economy to achieve a “good start” in the first quarter. Beijing’s idea is to end the ongoing slowdown in economic growth. Prime Minister Li Keqiang said that China has achieved its key economic targets for 2018 and is aiming for a strong start of the economy in the first quarter to build conditions that will help meet this year’s goals.
European markets mid-session recap
German stocks opened higher on Tuesday with DAX 30 rising by 0.26% to 10,884.66 points at 09:30 GMT. Lender Commerzbank climbed 2% and Deutsche Bank jumped 2.8% after Citigroup posted a fourth-quarter profit that beat analysts’ estimates. Deutsche Post rallied 2.7% after it issued a statement with comments on a report about upcoming pricing regulation. Nordex Group shares jumped by 4.7% after the company said that it received new orders for more than 4.75 GW in 2018, up over 73% compared to the previous year.
France stocks were lower after the close on Monday, as losses in the Oil & Gas, Technology and Utility sectors led shares lower. However, CAC 40 inches higher today as China pledges stimulus for its economy. The index is growing by 0.51% to 4,787.01 points at mid-session on Tuesday. Lender BNP Paribas rose half a percent, Credit Agricole gained 0.7% and Societe Generale added 1% after Citigroup posted a fourth-quarter profit that beat analysts’ estimates. The automaker Peugeot rose half a percent as it posted improved sales for the fifth year in a row in 2018, despite concerns over slowing demand in China.
Britain’s FTSE 100 opened slightly higher on Tuesday, but investors remained cautious ahead of a crunch vote on Prime Minister Theresa May’s Brexit plan. The index is up by 0.37% to 6,880.46 points at 09:30 GMT. Banks, miners, and oil majors led the early charge on the main index after China signaled more growth-boosting steps and oil prices rose amid supply cuts. Asia-focused bank HSBC was the biggest boost to the FTSE 100, with miner Rio Tinto also a big support.
Wall Street pre-session recap
The US stock futures pointed to a rebound on Tuesday, as positive headlines around China alleviated fears of an impending slowdown in the world’s second-largest economy. As of 4:30 a.m. ET, Dow futures traded 83 points higher, indicating a 70-point rise at the open. S&P 500 and Nasdaq futures were also slightly higher with expected opening growth of 5 points and 23 points, respectively.
The earnings season is in full swing, with investors keenly watching out for results from Wall Street titans J.P. Morgan and Wells Fargo for clues as to how they fared during last month’s market volatility.
Traders will also pay considerable attention to political developments in the UK British lawmakers are gearing up for a key vote on Prime Minister Theresa May’s Brexit deal Tuesday evening.