Amidst Postponed decision on Syria Action and China Data, European Stocks Jump
Stock market in Europe rebounded as investors welcomed more bright Chinese economic data. Also, the decision on the part of the U.S. to postpone any decision on military action against Syria, contributed to it. There was near a three-month high in European stocks.
The decision by the U.S. President Barack Obama to postpone a decision on military action against Syria also had a great effect on U.S. index futures and Asian shares. ARM Holdings Plc, the designer of chips for Apple Inc.’s iPhone capped growth of 5.7 percent. The growth is attributed to the company unveiling two new models of the device.
Good Time for Glencore Xstrata and Neste Oil
Glencore Xstrata (GLEN) advanced 2.3 percent to 328.75 pence which is the highest price since May 30 for the company. It is the world’s biggest exporter of power-station coal and has recently merged with Xstrata. On the other hand, Neste Oil also spiked 13 percent to 17.33 euros after receiving comparable operating profit.
Like European stocks, Asian stocks too rose on Tuesday trading wherein investors were buoyed by a string of upbeat global economic data. Investors were also influenced by the cooling off of the Syrian issue. Even the Chinese stock market capped an increase of 1.15 per cent after reports for industrial production came in and showed that it expanded in August, the fastest in nearly one and a half years.
Similarly, the Stoxx Europe 600 Index rose less than 0.1 percent to 309.94 as of 8:06 a.m. in London wherein the benchmark gauge capped a growth of 1.3 percent yesterday which is the highest since May 22, amidst the reports that showed Chinese industrial production and retail sales increased in August.
On the other hand, the National Bureau of Statistics (NBS) reported that the main gauge of output at China’s factories, workshops and mines increased 10.4 per cent year-on-year in August. The latest reports showing strong trade figures will add to recent results which are indicating for better growth later this year for the Chinese economy.
Overall, a good outlook also had great influence as buying sentiment was higher on Wall Street wherein it rose in midday trade with the Dow Jones Industrial Average up 0.62 per cent. Even Japanese traders are still optimistic after Tokyo successfully won the bid to host the Olympic Games in 2020.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org