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U.S. stocks rose Friday as a rare intervention Chinese regulators calmed investors following disappointing economic data on China growth.
The Dow Jones Industrial Average rose 206 points, or 0.8%, to 25586 in recent trading, has a bounceback that makes the index on track for weekly gains after a bruising day Thursday. The S & P 500 added 0.96% while the Nasdaq Composite gained 1.2%.
The gains on the heels of an eventful trading session in Asia. The Shanghai Composite Originally Fellows After Showing China's third-quarter gross domestic product was the weakest since the global financial crisis. Throughout the day, China's economic czar, central-bank governor and banking regulators all came out calling for confidence in China's economic outlook. Shares with the Shanghai Composite both up 2.6% after the intervention.
In the U.S., stocks were lifted in part by some positive earnings reports.
Shares in
PayPal
jumped 11% after the company boosted its outlook for the fourth quarter. Meanwhile,
Procter & Gamble
reported growth in five years, and shares rose 6.4%.
"Investors are faced with the good, the bad, and the ugly," said Katie Nixon, chief investment officer of Northern Trust Wealth Management, referring to the recent major stock swings in U.S. stock indexes. "The bad, however, is rising interest rates, she said, and heightening trade tensions with China, which has the potential to further rattle the markets around the world. the globe.
Beijing on Friday.
Photo:
Ng Han Guan / Associated Press
Indeed, investors in Asia are still nervous of the brewing trade war between the U.S. and China and the yuan's steady depreciation, said Sophie Huynh, cross-asset strategist at
Societe Generale
, but she added that looking ahead, Chinese equities still have something to offer.
"We think that China is a medium-term bullish story and we would keep Chinese assets in portfolios," Ms. Huynh said.
European stocks slipped Friday, with Italian assets under pressure, dragged down by a simmering confrontation between Italy and the European Union over the nation's proposed budget.
The Stoxx Europe 600 added 0.1%, dragged down by European manufacturers who were hit hard after Michelin and its outlook for the year and warned that a decline in European and Chinese sales was set to continue into the fourth quarter.
Shares in the French pull-maker fell 8%, while shares in its German counterparts were also dragged down by the warning, falling nearly 5%.
Overvalued equity markets coupled with trade fears, rising oil prices and concerns over future US monetary policy were prompting a selloff, said Peter Dixon, Global Financial Economist at Commerzbank.
"Under these circumstances, I think we have one of the fall dominoes, one of the markets tip over, then there are fears of contagion," he said.
In Europe, the clash between Italy's populist coalition and the European Commission continues to spook investors. The two parties are at odds over Italy's proposed budget.
In a letter published Thursday, the European Commission said Italy's spending plans were "unprecedented" and a "serious concern."
The Italian FTSE MIB was down 0.83%. The yield on the Italian 10-year rate was up around 0.1% at 3.75%, according to Tradeweb. Yields move inversely to prices.
Corrections & Amplifications
Global stocks edged up early Friday. An earlier version of this article is incorrectly stated as Wednesday. (Oct. 19, 2018)
Write to Corrie Driebusch at [email protected]
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