Global Stocks Up Despite Pressure on Miners -- 2nd Update
December 29 2015 - 8:10AM
Dow Jones News
By Riva Gold
Global stocks climbed Tuesday in the quiet trading week between
the Christmas and New Year holidays, although another fall in
beleaguered mining shares kept a lid on gains.
Futures pointed to 0.4% opening gains for the S&P 500.
Changes in futures aren't necessarily reflected in market moves
after the opening bell.
The Stoxx Europe 600 was up 0.7% midday and shares in Asia ended
higher as Chinese equities recovered from a selloff on Monday.
France's CAC 40 added 1.2% and Germany's DAX was up 1.3% as the
chemicals sector led gains.
Still, many of the week's swings simply reflect year-end
lethargy and position-squaring in thin trading, said Russ Mould,
investment director at AJ Bell, which holds GBP26.1 billion ($40
billion) in assets under management.
Meanwhile, a fall in basic resources dragged on broader indexes,
which traditionally rise into the year-end. Shares in Anglo
American PLC were down 7%, while those in ArcelorMittal SA lost
2.7% and Rio Tinto PLC was down 2.3%.
Brent crude oil was last up 0.3% at $36.74 a barrel, but remains
down over 35% for the year.
"Everything's on hold, and nobody's taking chances, given oil
weakness and fears over China," said Mr. Mould. "The commodity
price collapse shows deflation is still a big threat."
Back in equities, China's Shanghai Composite Index gained 0.9%
after falling the most it had in a month in the previous session
amid signs officials are worried about capital flight.
Japan's Nikkei Stock Average added 0.6%, while Australia's
S&P ASX 200 gained 1.2% as it reopened from a holiday,
advancing for an eighth consecutive session.
Tuesday's gains followed a slightly lower close for Wall Street
on Monday as energy stocks sold off in the lowest full day of
trading volume for the year.
In currencies, the euro was down 0.1% against the dollar at
$1.0969, while the dollar was up 0.1% against the yen at
Yen120.4290.
Gold was up 0.1% at $1,068.90 a troy ounce.
Investors this week will be watching to see if U.S. indexes can
rally in the final week of trading to eke out a gain for 2015. So
far, the S&P 500 is on track to lose 0.1% and the Dow
industrials are down 1.7%. Major bourses have been volatile in
recent weeks, as investors consider weakness in commodity prices,
trouble in the high-yield debt market, lackluster global growth and
the U.S. Federal Reserve's first interest rate rise in nearly a
decade.
Later Tuesday, investors will also eye a fresh reading on the
U.S. housing market and consumer confidence.
Financial markets in the U.S., Europe and Japan will be closed
Friday for New Year's Day.
Write to Riva Gold at riva.gold@wsj.com
(END) Dow Jones Newswires
December 29, 2015 07:55 ET (12:55 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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