Bright Earnings and US Growth Data Boost Global Stocks

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Bright Earnings and US Growth Data Boost Global Stocks

Upbeat corporate earnings and US data showing good second-quarter economic growth boosted global equities markets on Thursday, boosting the rebound from Covid-19.

A torrent of excellent company results, including those from Covid-19 vaccine producer AstraZeneca, oil behemoth Shell, and lender Lloyds, boosted London stock prices by 0.9 percent.

Earnings at German carmaker Volkswagen and France’s TotalEnergies helped Frankfurt rise 0.5 percent and Paris gain 0.4 percent.

Following good results from Ford, Comcast, and others, trading in New York was also brisk, with all three major indices ending higher and within striking distance of all-time highs.

“Earnings remain quite promising,” said Craig Erlam, an analyst at OANDA.

In the second quarter, the US economy recovered to pre-pandemic levels, although the 6.5 percent annualized rate of expansion was slower than predicted.

Earnings have been “fantastic,” according to Art Hogan, chief analyst at National Securities. Investors were particularly delighted with the Federal Reserve’s restatement of a commitment to keep stimulus in place for longer on Wednesday.

“When you combine those three factors, better data, stronger earnings, and… a patient Fed, you have a likely climate that favors equities.”

The coronavirus vaccine sold for $1.2 billion (1 billion euros) in the first half of the year, according to AstraZeneca, a British pharmaceuticals company.

The news came just one day after Pfizer, the world’s largest pharmaceutical company, raised its annual revenue and profit forecasts due to strong demand for its flu vaccine.

The announcement that both Shell and Total returned to profit in the second quarter of 2021, backed by the crude market’s recovery from viral volatility, energised the oil business. ExxonMobil and Chevron, two of the world’s largest oil companies, are expected to release earnings on Friday.

Facebook joined the group of tech behemoths that reported better-than-expected profits. However, the company’s stock dropped 4% as it warned that growth will be slowed by regulatory actions and a change to Apple’s iPhone operating software that could impair its ad targeting.

Robinhood Markets fell 8.4% after the fast-growing stock trading app, which has a young consumer base, debuted on the Nasdaq, amid significant concerns about government inspection.

New York – The Dow Jones Industrial Average is up 0.4 percent to 35,084.53 points (close)

S&P 500: 0.4 percent up at 4,419.15 in New York (close)

Nasdaq is up 0.1 percent at 14,778.26 in New York (close)

The FTSE 100 index in London is up 0.9 percent to 7,078.42. (close)

DAX 30 in Frankfurt is up 0.5 percent to 15,640.47. (close)

CAC 40 in Paris is up 0.4 percent at 6,633.77. (close)

Brief News from Washington Newsday. EUROPE.

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