Global Stocks Rise as China's Economy Shows Gains

Date : 12/16/2019 @ 11:48AM
Source : Dow Jones News
Stock : FTSE 100 Index (UKX)
Quote : 5842.66  164.93 (2.90%) @ 4:45PM
FTSE 100 share price Chart

Global Stocks Rise as China's Economy Shows Gains

FTSE 100
Index Chart

6 Months : From Oct 2019 to Apr 2020

Click Here for more FTSE 100 Charts.
By Avantika Chilkoti 

Global stocks started the week higher as data signaled an improvement in the Chinese economy, adding to optimism that some of the biggest risks to markets are clearing.

Futures tied to the Dow Jones Industrial Average edged up 0.2% on Monday, while the Stoxx Europe 600 index gained over 1%. In Asia, the Shanghai Composite Index closed up 0.6%.

Fresh data showed that Chinese economic activity, including factory production and consumer spending, improved in November. The better-than-expected results for industrial production and retail sales may help alleviate investors' concerns about growth in the world's second-largest economy.

Markets were buoyed last week as some of the major risks facing global economic growth -- the U.S.-China trade spat, changes to the North American Free Trade Agreement and uncertainty around Brexit -- appeared to ease. On Friday, the U.S. reached a truce with China after securing a pledge from Beijing to boost purchases of agricultural products, bringing to a temporary halt to tensions that have rocked markets for most of this year.

Ahead of the opening bell in New York, shares in Boeing declined 2.4% in premarket trading. The aerospace company is considering either suspending or cutting back production of the 737 MAX, The Wall Street Journal reported. Deepening production cuts would inflate Boeing's costs and trigger charges against its financial results as fixed expenses would be spread among fewer planes.

International Flavors & Fragrances Inc. fell 5.9% after DuPont de Nemours reached a deal to combine its nutrition business with IFF in a deal that will give DuPont a $7.3 billion cash payment and about 55.4% of the new company.

Over in the U.K., the FTSE 100 index, which tracks the biggest companies in the country, rose over 2% in its largest one-day rally since February. The gauge is extending gains from last week following Prime Minister Boris Johnson's resounding majority in the general elections. The result, analysts said, paves the way for the U.K. to leave the bloc at the end of next month, clearing some of the political uncertainty that has hung over the economy since the 2016 Brexit referendum.

"It takes the risk of a no-deal Brexit immediately off the table and it gives you some certainty, so that's better than where we were," said Thomas Pugh, U.K. economist at Capital Economics.

Within European equities, shares in Electrolux dropped over 10% after the Swedish appliance maker announced that a reorganization of its manufacturing in the U.S. will hit fourth-quarter operating income.

Write to Avantika Chilkoti at


(END) Dow Jones Newswires

December 16, 2019 06:33 ET (11:33 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
Your Recent History
Gulf Keyst..
FTSE 100
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:us D:20200410 19:55:49