Calm Descends on Markets before US Growth Data
Global stock markets mostly rose Friday as calm descended before vital US data that is forecast to show surging growth in the world's biggest economy, dealers said.
Second-quarter US gross domestic product (GDP) data is due 1230 GMT and expected to reveal a jump in economic growth that President Donald Trump can use to trumpet the success of his economic agenda.
Analysts anticipate that Trump's flagship massive $1.5-trillion of tax cuts that kicked in at the start of the year will have fired up economic activity.
Around midday, London stocks won 0.5 percent, with telecoms group BT heading the FTSE 100 risers' board after posting better-than-expected first-quarter earnings.
In early afternoon eurozone deals, Paris sauntered 0.1 percent higher while Frankfurt added 0.4 percent in value, aided partly by this week's easing in EU-US trade tensions.
- Highest growth in years? - "European markets have got off to a positive start ahead of the latest US second-quarter GDP announcement," said CMC Markets analyst Michael Hewson.
The reading "is expected to come in at its highest level in years, boosted by build-ups in inventory and the January tax cuts by the Trump administration".
The GDP print, which economists say could be the strongest in four years, is partly thanks to Trump's trade wars with US exporters rushing to beat the imposition of tariffs -- but those same disputes threaten to drag growth lower in the coming months and years.
Current forecasts say the second-quarter GDP estimate could show growth was anywhere between four and five percent -- the fastest pace since the third quarter of 2014.
There are special factors behind the growth spurt linked to the trade disputes, which include 25 percent US tariffs on $34 billion in Chinese goods -- with more on the way -- and steep tariffs on steel and aluminium, which provoked China and others to hit back with import duties on US goods.
- Facebook warning - Wall Street was dragged down Thursday after Facebook warned of weaker growth, sending its shares falling nearly 20 percent and wiping out some $100 billion in market value.
But the stock market gloom was lifted slightly after Amazon delivered better-than-expected profits. The online colossus' net profit in the past quarter jumped 12-fold to $2.5 billion on the back of gains made from its rapid global expansion.
Asian stocks mostly edged higher Friday with Tokyo buoyed once more by a weaker yen, which helps exporters.
Earlier this week, Trump and European Commission chief Jean-Claude Juncker met in Washington in a bid to resolve their festering trade dispute, with the US leader pulling back a threat of tariffs on the auto sector.
Stocks of French and German carmakers rallied on the news Thursday, but hit reverse gear on Friday.
- Key figures at 1100 GMT -London - FTSE 100: UP 0.5 percent at 7,701.58 points
Frankfurt - DAX 30: UP 0.4 percent at 12,856.04
Paris - CAC 40: UP 0.1 percent at 5,487.95
EURO STOXX 50: UP 0.4 percent at 3,522.59
Tokyo - Nikkei 225: UP 0.5 percent at 22,712.75 (close)
Hong Kong - Hang Seng: UP 0.1 percent at 28,804.28 (close)
Shanghai - Composite: DOWN 0.3 percent at 2,873.59 (close)
New York - Dow: UP 0.4 percent to 25,527.07 (close)
New York - S&P 500: DOWN 0.3 percent to 2,837.44 (close)
Euro/dollar: DOWN at $1.1631 from $1.1643 at 2100 GMT
Pound/dollar: DOWN at $1.3096 from $1.3109
Dollar/yen: DOWN at 111.13 yen from 111.23 yen
Oil - Brent Crude: DOWN five cents at $74.49 per barrel
Oil - West Texas Intermediate: DOWN 18 cents at $69.43
Source: Agence France Presse
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