Global stocks mostly rise amid upbeat corporate earnings
Global stocks mostly rose Tuesday as company earnings reports continued to largely beat expectations, suggesting the economy remains strong despite concerns about trade.
KEEPING SCORE: Germany's DAX was up 0.3 percent to 12,608 while France's CAC 40 was little changed at 5,437. Britain's FTSE 100 rose 0.3 percent to 7,421. U.S. shares were also set to drift higher with Dow and S&P 500 future both up 0.6 percent.
EARNINGS: Coca-Cola reported net income of 32 cents per share in the first quarter, above Wall Street expectations. That followed a jump in profits at Google parent Alphabet late Monday. It reported strong digital ad sales and an accounting adjustment. The reports confirm that the first three months of the year have been largely positive for companies, as they enjoy a strong global economy, despite recent tensions between the U.S. and China over trade.
U.S. BOND YIELDS: The yield on the 10-year Treasury note drew close to 3 percent on Monday, a milestone it has not reached since January 2014. It touched 2.98 percent but by Tuesday had fallen back to 2.97 percent. The 10-year yield stood at 2.43 percent at the end of 2017. Since the global financial crisis in 2008-09, a combination of low inflation expectations and a bond-buying program by the Federal Reserve have helped keep bond yields low but they have climbed this year as inflation has picked up and the Fed raised interest rates. With the Fed no longer buying bonds and investors expecting greater inflation, analysts say higher yields could make bonds more attractive than stocks. They also make U.S. dollars relatively more attractive.
THE QUOTE: "The U.S. dollar has put on a compelling show overnight as the stars align on the back of higher U.S. yields and a considerable reduction in the U.S. dollar's geopolitical risk premium as an outwardly calmer mood surrounding trade and geopolitical risk takes hold," Stephen Innes of OANDA said in a commentary.
CURRENCIES: The dollar rose to 108.81 yen from 108.71 yen. The euro fell to $1.2220 from $1.2233.
ASIA'S DAY: Japan's benchmark Nikkei 225 rose 0.9 percent to finish at 22,278.12, helped by the weaker yen. Australia's S&P/ASX 200 climbed 0.6 percent to 5,921.60, and South Korea's Kospi lost 0.4 percent to 2,464.14. Hong Kong's Hang Seng added 1.4 percent to 30,661.56, while the Shanghai Composite jumped nearly 2.0 percent to 3,128.93, recouping losses from the previous day. Shares were mixed in Southeast Asia.
ENERGY: Benchmark U.S. crude oil gained 18 cents to $68.82 a barrel. It rose 0.4 percent to $68.64 a barrel in New York the previous day. Brent crude, used to price international oils, gained 8 cents to $74.79 per barrel in London.
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