Global Stocks Jump, Led by China Rebound

Date : 08/12/2019 @ 9:10AM
Source : Dow Jones News
Stock : Tullow Oil Plc (TLW)
Quote : 52.66  7.02 (15.38%) @ 4:35PM
Tullow Oil share price Chart

Global Stocks Jump, Led by China Rebound

Tullow Oil (LSE:TLW)
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6 Months : From Jun 2019 to Dec 2019

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By Avantika Chilkoti 

-- Chinese stocks rise as yuan's slow devaluation continues

-- European markets climb, led by Germany

Stocks across the globe rallied Monday, with Chinese markets advancing by the most in over a month, following a roller-coaster week in which U.S.-China trade tensions shook asset prices across the board.

The Shanghai Composite Index climbed 1.5% after the Chinese central bank set the yuan at a stronger rate than traders had expected -- 7.0211 to the dollar -- easing concerns of a quick devaluation after President Trump last week accused China of manipulating its currency.

The benchmark Stoxx Europe 600 index gained 0.9%, led by a 1% advance in Germany's DAX.

The positive turn in markets comes despite fresh gloom around U.S.-China trade talks, with Mr. Trump on Friday suggesting that negotiations could break off.

Among the biggest gainers in Europe was Tullow Oil, whose shares rose 17% after the company said it had found more oil off the coast of Guyana. Shares in ams AG, a 3-D sensor maker that supplies to Apple, dropped 9% on reports that the Austrian company has put in a bid to take over German lighting company Osram Licht, creating a bidding war with private-equity buyers. Shares in Osram were up 10% early Monday.

In Asia, amid a day of light trading with a number of regional exchanges closed, Cathay Pacific fell 4.5%, putting the Hong Kong airline on course to close at its lowest level in more than a decade. China's aviation authority on Friday ordered the carrier to remove all employees involved in the protests in Hong Kong from flights to mainland China. The most closely watched class of shares in Swire Pacific, the Hong Kong conglomerate that is Cathay's largest shareholder, fell nearly 6%.

This week, investors will be watching for new consumer price inflation estimates from the U.S. on Tuesday after the U.S. Federal Reserve cited subdued inflation as one reason for cutting rates last week. Consumer prices increased 0.1% between May and June.

"Given the low unemployment and strong consumer confidence in the U.S., it's unlikely we get a recession any time soon," said Patrick Spencer, managing director at U.S. investment firm Baird. "It's a muddle-along economy then with markets continuing to trade higher."

--William Horner, Steven Russolillo and Frances Yoon contributed to this article.

Write to Avantika Chilkoti at Avantika.Chilkoti@wsj.com

 

(END) Dow Jones Newswires

August 12, 2019 04:55 ET (08:55 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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