Global stocks mostly rose Tuesday, with US and German indices posting records, as markets weighed Chinese stimulus hopes, political tensions in France and the US interest-rate outlook.
Germany’s blue-chip DAX stock index jumped above 20,000 points for the first time and Paris rebounded even as France braced for new political turmoil. In New York, both the S&P 500 and Nasdaq narrowly rose to finish at records, while the Dow pulled back.
Oil prices jumped more than two percent following reports that crude exporters were near an agreement to extend production limits.
A closely-watched labor market report showed an increase in US job openings in October, but also a decline in new job postings during the month, a less upbeat sign.
Samuel Tombs, chief US economist at Pantheon Macroeconomics, said the data overall provides “good grounds” for the Federal Reserve to lower interest rates again this month.
Still, the choppiness of Tuesday’s trading session in New York points to reticence among US investors following a series of post-election records that many pundits believe have left stocks overvalued.
“There wasn’t a lot of conviction behind the upside moves,” said Briefing.com. “The overall vibe in the market was more negative.”
Stocks in Paris edged higher even as France headed into a new political crisis as opposition lawmakers vowed to topple the minority government of Prime Minister Michel Barnier in a no-confidence vote after just three months in office.
Germany’s DAX, meanwhile, scored a fresh milestone, defying multiple headwinds battering Europe’s biggest economy.
The German economy, hit hard by a manufacturing slowdown and weak demand for its exports, has struggled in 2024. Yet the DAX has advanced in large part because companies in the index do heavy business abroad.
In addition, the euro’s recent weakness has boosted Germany’s export-oriented companies, while easing interest rates both in the eurozone and the United States have also helped sentiment.
Investors greeted a Bloomberg report that China’s top leaders, including President Xi Jinping, would hold a two-day economic work conference next week to outline their targets and stimulus plans for next year.
The report followed manufacturing activity data on Monday that suggested China’s economic struggles may be coming to an end, but investors are looking for Beijing to step up support for the economy.
The news helped push Hong Kong and Shanghai stock markets higher despite Washington announcing new export restrictions taking aim at Beijing’s ability to make advanced semiconductors.
The moves step up existing US efforts to tighten curbs on exports of state-of-the-art AI chips to China.
Beijing hit back by saying it would restrict exports to the United States of some key components in making semiconductors.
Oil prices jumped ahead of a meeting Thursday of members of the OPEC oil cartel and its allies
“The forecast is that they will announce an extension until the end of the first quarter of 2025, and this should help put a floor under prices,” said Trade Nation analyst David Morrison.
Key figures around 2130 GMT
New York – Dow: DOWN 0.2 percent at 44,705.53 (close)
New York – S&P 500: UP 0.1 percent at 6,049.88 (close)
New York – Nasdaq Composite: UP 0.4 percent at 19,480.91 (close)
London – FTSE 100: UP 0.6 percent at 8,359.41 (close)
Paris – CAC 40: UP 0.3 percent at 7,255.42 (close)
Frankfurt – DAX: UP 0.4 percent at 20,016.75 (close)
Tokyo – Nikkei 225: UP 1.9 percent at 39,248.86 (close)
Hong Kong – Hang Seng Index: UP 1.0 percent at 19,746.32 (close)
Shanghai – Composite: UP 0.4 percent at 3,378.81 (close)
Euro/dollar: UP at $1.0511 from $1.0498 on Monday
Pound/dollar: UP at $1.2673 from $1.2655
Dollar/yen: DOWN at 149.53 yen from 149.60 yen
Euro/pound: DOWN at 82.94 from 82.95 pence
Brent North Sea Crude: UP 2.5 percent at $73.62 per barrel
West Texas Intermediate: UP 2.7 percent at $69.94 per barrel
burs-jmb/dw