- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
- Spain logs record summer tourism as inflow draws protests
- Hedi Slimane quits as Celine's artistic director
- Oil prices extend rally on Iran attack
RBGPF | -1.35% | 59.99 | $ | |
BCC | -0.9% | 138.29 | $ | |
CMSC | -0.16% | 24.74 | $ | |
SCS | -1.98% | 12.62 | $ | |
NGG | -2.7% | 66.97 | $ | |
RIO | -1.42% | 69.83 | $ | |
BTI | -2.45% | 35.11 | $ | |
AZN | -2.12% | 77.93 | $ | |
GSK | -2.81% | 38.37 | $ | |
CMSD | -0.16% | 24.89 | $ | |
JRI | -0.6% | 13.3 | $ | |
RYCEF | 1.15% | 6.98 | $ | |
BCE | -1.77% | 33.84 | $ | |
RELX | -1.46% | 46.61 | $ | |
VOD | -0.52% | 9.69 | $ | |
BP | 0.28% | 32.46 | $ |
Stocks rise as US consumers keep spending
Stocks rose Friday after the latest data showed that US consumers continue to spend more in the latest signal of the strength of the economy despite high inflation and rising interest rates.
Better-than-expected results from Citigroup also helped allay somewhat concerns about what waits in store for investors as companies begin to report their next quarterly results.
The euro held above $1.00, having sunk below parity this week on fears Russia would cut off Europe's gas supplies in retaliation for Ukraine war sanctions, pushing the region into recession.
Oil prices rebounded having slumped Thursday on renewed fears of a global recession that would dent demand for energy.
Wall Street opened higher on a better-than-expected 1.0 percent rise in retail sales in June.
While not adjusted for inflation, sales were still up 0.7 percent even when gasoline was removed from the calculation, according to the Commerce Department data.
"The key takeaway from the report is that it was strong enough to keep concerns about weakening consumer spending at bay for the time being," said analysts at Briefing.com.
Markets took a major knock this week from news that US inflation zoomed to a 40-year high of 9.1 percent in June on energy costs.
After rate hikes by several countries this week, investors now expect the Federal Reserve to lift rates later this month by 75 basis points as officials battle decades-high inflation, though some observers suggest a one-percentage-point move could even be on the cards.
While experts warn that raising US rates risks hammering the economy, the Fed has made it clear the number-one priority is bringing down prices.
The retail sales figures join other data showing that the US economy is holding up relatively well so far despite high inflation and rising interest rates.
Meanwhile, Citigroup's net profits fell by 25 percent to $4.5 billion, yet earnings per share easily beat expectations. The banking group took in more revenue and benefited from rising interest rates.
Citigroup shares jumped 6.0 percent as trading got underway in New York.
Wall Street stumbled Thursday with sentiment weighed down by disappointing reports from JPMorgan Chase & Co. and Morgan Stanley.
Those compounded worries that company profits would be hit by the fallout from a number of issues including rocketing consumer prices, monetary policy tightening and the war in Ukraine.
European stocks were higher in afternoon trading.
In Asia, Hong Kong and mainland Chinese equity markets led losses after data showed China's economy grew just 0.4 percent in the second quarter, battered by Covid lockdowns in major cities including Shanghai and Beijing.
The reading was well off the 1.6-percent growth predicted by analysts in an AFP survey.
Elsewhere, traders are keeping tabs on US President Joe Biden's visit to the Middle East as he tries to persuade Saudi Arabia to bring down high oil prices by pumping more crude.
- Key figures at around 1330 GMT -
London - FTSE 100: UP 1.4 percent at 7,138.46 points
Frankfurt - DAX: UP 2.2 percent at 12,793.69
Paris - CAC 40: UP 1.2 percent at 5,986.08
EURO STOXX 50: UP 1.7 percent at 3,455.59
New York - Dow: UP 1.5 percent at 31,081.84
Tokyo - Nikkei 225: UP 0.5 percent at 26,788.47 (close)
Hong Kong - Hang Seng Index: DOWN 2.2 percent at 20,297.72 (close)
Shanghai - Composite: DOWN 1.6 percent at 3,228.06 (close)
Euro/dollar: UP at $1.0062 from $1.0022 Thursday
Pound/dollar: UP at $1.1836 from $1.1826
Euro/pound: UP at 85.04 pence from 84.72 pence
Dollar/yen: DOWN at 138.74 yen from 138.93 yen
West Texas Intermediate: UP 2.6 percent at $98.26 per barrel
Brent North Sea crude: UP 2.9 percent at $102.00 per barrel
burs-rl/bp
O.Hansen--CPN