World shares advance, tracking rally on Wall Street

Key Points

• Asian shares saw gains on Tuesday, tracking a rebound in U.S. stocks after they recovered most of last week's losses.
• The U.S. jobs report released Friday raised expectations for a potential interest rate cut by the Federal Reserve, positively feeding into market confidence.
• India's Sensex was an outlier with a 0.5% drop amid concerns over U.S. trade tensions and possible oil purchase cutbacks from Russia.
• Key upcoming earnings reports include major companies like The Walt Disney Co. and McDonald’s, which could further influence market sentiment.

BANGKOK (AP) — Shares advanced in Europe and Asia on Tuesday after U.S. stocks bounced back from a sell-off driven by weak U.S. jobs data.

Investors appeared to have recovered some confidence after worries over how President Donald Trump’s tariffs may be punishing the economy sent a shudder through Wall Street last week.

At the same time, signs of weakness in hiring by U.S. businesses have raised expectations that the Federal Reserve will cut interest rates at its next meeting in September, potentially a plus for markets.

In early European trading, Germany's DAX gained 0.6% to 23,898.26, while the CAC 40 in Paris edged 0.2% higher to 7,648.26. Britain's FTSE 100 was up 0.4% at 9,161.21.

The future for the S&P 500 gained 0.2% while that for the Dow Jones Industrial Average was up 0.1%.

In Asian trading, Tokyo's Nikkei 225 index gained 0.6% to 40,549.54 while the Kospi in South Korea jumped 1.6% to 3,198.00.

In Hong Kong, the Hang Seng rose 0.7% to 24,902.53. The Shanghai Composite index surged 1% to 3,617.60.

Australia's S&P/ASX 200 jumped 1.2% to 8,770.40, while the SET in Thailand climbed 1.3%.

India's Sensex was the sole outlier, losing 0.5% on concerns over trade tensions with the United States as the Trump administration pushes for cutbacks in oil purchases from Russia.

India has indicated that it will continue buying oil from Russia, saying its stance on securing its energy needs is guided by the availability of oil in the markets and prevailing global circumstances.

“Trump’s threats of ‘substantial’ tariff hikes on account of imports of Russian crude pose a quagmire for India,” Mizuho Bank said in a commentary. “Between exacerbated U.S.-imposed geo-economic headwinds and financial/macro setbacks from Russian oil advantages lost, pain will be hard to avert.”

This week’s highlights for Wall Street will likely include earnings reports from The Walt Disney Co., McDonald’s and Caterpillar, along with updates on U.S. business activity.

On Monday, the S&P 500 jumped 1.5% and the Dow climbed 1.3%. The Nasdaq composite leaped 2%.

Idexx Laboratories helped Wall Street recover from its worst day since May, soaring 27.5% after the seller of veterinary instruments and other health care products reported a stronger profit for the spring than analysts expected.

The pressure is on U.S. companies to deliver bigger profits after their stock prices shot to record after record recently. Reports from big U.S. companies have largely come in better than expected and could help steady a U.S. stock market that may have been due for some turbulence.

A jump in stock prices from a low point in April had raised criticism that the broad market had become too expensive.

Berkshire Hathaway lost nearly 3% after Warren Buffett’s company reported a drop in profit for its latest quarter from a year earlier. The drop-off was due in part to the falling value of its investment in Kraft Heinz.

American Eagle Outfitters jumped 23.6% after Trump weighed in on the debate surrounding the retailer’s advertisements, which highlight actor Sydney Sweeney’s great jeans. Some critics thought the reference to the blonde-haired and blue-eyed actor’s “great genes” may be extolling a narrow set of beauty standards. “Go get ’em Sydney!” Trump said on his social media network.

Tesla rose 2.2% after awarding CEO Elon Musk 96 million shares of restricted stock valued at approximately $29 billion. The move could alleviate worries that Musk may leave the company.

In other dealings early Tuesday, U.S. benchmark crude oil shed 62 cents to $65.67 per barrel, while Brent crude, the international standard, gave up 55 cents to $68.21 per barrel.

The U.S. dollar rose to 147.59 Japanese yen from 147.09 yen. The euro slipped to $1.1545 from $1.1573.