US stocks climbed overnightas reports of stimulus efforts in China and Germany calmed fears of a severe downturn in the global economy.
Tuesday, 20th August, 2019
China stocks jumped over 2 percent, their best since early July, as investors cheered Beijing's latest stimulus to prop up an economy hit hard by a never-ending trade war with the US. The CSI300 index rose 2.2 percent, to 3,791.09 points, while the Shanghai Composite Index gained 2.1 percent, to 2,883.10 points. In Hong Kong, the Hang Seng index ended up 2.2 percent at 26,291.84, while the China Enterprises Index gained 1.5 percent at 10,109.15. Around the region, MSCI's Asia ex-Japan stock index was firmer by 1.25 percent, while Japan's Nikkei index closed up 0.71 percent.
European shares ended higher for a second straight session on signs that measures would be adopted to prop up growth in major economies, while bond yields rebounded amid improved global sentiment plagued by recession worries. The pan-European STOXX 600 index, hammered since the start of August by worries of a possible global slowdown, ended 1.2 percent higher, with Frankfurt shares up 1.3 percent, recovering from last week's six-month low. Friday's report that Germany's coalition government may ditch its balanced budget rule to take on new debt and launch stimulus continued to help sentiment. Finance Minister Olaf Scholz said the country possessed the fiscal strength to counter any future economic crisis "with full force."
US stocks climbed as reports of stimulus efforts in China and Germany calmed fears of a severe downturn in the global economy. The benchmark S&P 500 has recovered most of its losses following Wednesday's brief inversion of the yield curve between 2-year and 10-year Treasuries, commonly viewed as an indicator of a recession within the next two years. After falling nearly 3 percent on Wednesday, the S&P 500 has risen for the last three sessions.
The Dow Jones Industrial Average rose 249.78 points, or 0.96 percent, to 26,135.79, the S&P 500 gained 34.97 points, or 1.21 percent, to 2,923.65 and the Nasdaq Composite added 106.82 points, or 1.35 percent, to 8,002.81.
Ahead of the local open SPI futures are 12 points higher at 6,440.
|Foreign Equities||Close||Change||% Change|
|Dow Jones (US)||
|FTSE 100 Index||7190||73||1.02|
|Nikkei 225 (Japan)||20563||144||0.71|
|Oil - West Texas Crude||/t 3mth||56.1||1.3||2.43|
|Currency||Close||Pts Change||% Change|
|$A vs $US||0.6766||-0.0018||-0.26|
|$A vs GBP||0.5579||-0.0001||-0.01|
|$A vs EUR||0.6105||-0.0011||-0.17|
|$A vs YEN||72.10||
|$A vs NZD||1.0553||-0.0004||-0.04|