A roundup of trading on major world markets:
NEW YORK – Wall Street stocks have finished little changed in choppy trade as retail sales bested expectations, even as leading department stores reported lower profits.
The Dow Jones Industrial Average added 17,408.25, up 5.74 points (0.03 per cent) on Thursday.
The broad-based S&P 500 dipped 2.66 points (0.13 per cent) to 2,083.39, while the tech-rich Nasdaq Composite Index fell 10.83 points (0.21 per cent) at 5,033.56. Both the S&P 500 and Nasdaq were in positive territory much of the day.
US retail sales rose 0.6 per cent in July from June levels, to $US446.5 billion, beating expectations and sparking speculation that the Federal Reserve could lift interest rates as soon as September.
But department store Kohl’s shares tumbled 8.8 per cent as it reported lower-than-expected earnings, with second-quarter net income falling 44 per cent to $US130 million.
LONDON – Europe’s main stock markets have closed with a mixed result, rebounding slightly from recent heavy losses linked to China’s weakening of its currency and awaiting a Greek parliament vote on terms for a third bailout.
London’s benchmark FTSE 100 index ended the day on Thursday down a slight 0.04 per cent at 6,568.33 points.
In the eurozone, Frankfurt’s DAX 30 rose 0.82 per cent to 11,014.63 points, while the CAC 40 in Paris gained 1.25 per cent to end at 4,986.85.
The euro dropped to $US1.1140 from $US1.1159 late in New York on Wednesday.
“So fears of Chinese economic meltdown appear to have been allayed for the time being, evident in a broad stock market rally,” said Augustin Eden, research analyst at Accendo Markets.
Europe’s main indices had slumped over the past two days, with Frankfurt and Paris both shedding more than three per cent on Wednesday.
China weakened its currency for the third consecutive day on Thursday, but financial markets that had been shaken by the earlier surprise devaluation took heart as authorities pledged not to let the yuan plummet.
HONG KONG – Most Asian share markets rallied and regional currencies gained after China reassured markets it would not allow the yuan to plummet after a surprise devaluation this week.
The US dollar inched higher, after taking a knock in New York from speculation the US Federal Reserve will delay hiking interest rates following China’s devaluation of the yuan.
Tokyo on Thursday closed up 0.99 per cent, or 202,78 points, to 20,595.55 and Seoul gained 0.4 per cent, or 7.99 points, to end at 1,983.46 after the South Korean central bank left its key rate at a record low.
Hong Kong’s benchmark Hang Seng Index added 0.43 per cent, or 102.78 points, to end the day at 24,018.8 while Shanghai gained 1.76 per cent, or 68.24 points, to 3,954.56.
