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Bloomberg
US equities climbed along with European stocks as positive earnings reports boosted investor sentiment, and China’s efforts to support its economy spurred interest in higher-risk assets across Asia.
The S&P 500 Index opened higher on Tuesday, as the likes of Boeing and Verizon climbed on strong results.
Google parent Alphabet anchored a big leap in tech stocks after beating analysts’ estimates, sending the Nasdaq 100 Index to a record intraday high. Carmakers and banks were among the biggest winners in the Stocks Europe 600 Index, as PSA Group said subsidiary Opel turned a profit and lender UBS Group AG posted better-than-forecast results.
“There are the classic headwinds such as tariffs and so forth that everybody knows about,†Peter Raimondi, founder and chief executive officer of Dakota Wealth Management, said by phone, “but our particular feeling about tariffs is it’s pretty hard to see the net effect it’s going to have on earnings with earnings being, as evidenced today, so impacted by recent tax cuts as well as just a strong economy.â€
The euro erased a decline as data showed the continent’s biggest economy has so far bucked worries over disruption to trade. The dollar edged lower. Treasuries and European sovereign bonds slipped.
Shares in Asia rallied on news China will increase infrastructure spending and take other measures to bolster growth, with the Shanghai Composite Index posting the biggest three-day rally in two years.
With Donald Trump again tweeting that tariffs are good for America, China’s moves to shore up growth in the face of a rumbling trade war are reassuring investors. Traders have also taken heart from upbeat corporate results. More earnings will roll in as the week grinds on, while the path of monetary policy will be back in focus as the European Central Bank meets to decide interest rates.
Earnings season continues with the following tech companies among those reporting: Facebook, Amazon.com, Twitter, Advanced Micro Devices, Qualcomm and Intel.
The S&P 500 Index rose 0.8 percent in New York time. The Stoxx Europe 600 Index climbed 1 percent, the largest increase in a month. The UK’s FTSE 100 advanced 0.9 percent to its highest in more than five weeks. The MSCI Emerging Market Index rose 1.3 percent, its biggest climb in two weeks.
The Bloomberg Dollar Spot Index declined 0.2 percent. The euro rose 0.1 percent to $1.1708. The British pound climbed 0.3 percent to $1.3145.
The yield on 10-year Treasuries rose less than one basis point to 2.96 percent.