Log in

Global markets steady as investors gauge length of recovery

Posted on Tuesday, June 30th, 2020 By Yuri Kageyama, AP Business Writer

A woman wearing a face mask walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange Tuesday, June 30, 2020. Asian shares are rising, cheered by a rally on Wally Street that underlined some optimism about global business performance despite the ongoing coronavirus pandemic. (AP Photo/Vincent Yu)

TOKYO (AP) — World stock markets were steady on Tuesday as investors weighed evidence of an economic recovery against a rise in reported coronavirus contagions in some countries.

Markets were buoyed somewhat by stronger than expected manufacturing data from China, the world's second largest economy. But other new economic indicators were mixed.

France's CAC 40 rose 0.3% to 4,960, while Germany's DAX gained 0.7% to 12,318 after new data showed an uptick in eurozone inflation. The annual rate edged up to 0.3% in June from 0.1% the month before, largely due to higher energy prices, with the cost of many goods still weighed down by a lack of demand.

Britain's FTSE 100 lost 0.4% to 6,204. U.S. shares were set for a steady open, with Dow and S&P 500 futures roughly unchanged.

A survey of China factory managers released Tuesday was better than expected, suggesting the global economy may be on the upswing after bottoming out at the height of shutdowns in April-May, analysts said.

The monthly purchasing managers’ index released by the national statistics agency and an industry group rose to 50.9 from May’s 50.6 on a 100-point scale on which numbers above 50 show activity expanding.

China, where the coronavirus pandemic began in December, was the first economy to reopen. Factory and other activity is reviving but global demand is weak and Chinese consumers, worried about losing jobs, are reluctant to spend.

Forecasters say global demand for Chinese goods is uncertain as infections rise in the United States, Brazil and some other countries.

Increases in production and new orders point to a rebound in foreign demand, though export demand remains much weaker than overall new orders, said Martin Rasmussen, an economist at Capital Economics.

Further clouding the outlook, Japan reported a plunge in factory output in May, and Spain released statistics showing that its economy contracted 5.2% during the first three months of the year from the previous quarter.

The mixed signals have investors swinging between optimism and gloom.

“These will be important questions to answer as equity markets hang in a delicate balance at present,” Jingyi Pan, market strategist at IG, said in a commentary.

Japan’s benchmark Nikkei 225 gained 1.3% to finish at 22,288.14. South Korea’s Kospi gained 0.7% to 2,108.33, while Australia’s S&P/ASX 200 rose 1.4% to 5,897.90. Hong Kong’s Hang Seng gained 0.5% to 24,427.19. The Shanghai Composite closed at 2,984.67, up 0.8%.

Countries across the world are in various stages of the pandemic. Some will not resume normal economic activity for some time because of continuing restrictions and changing consumer behavior, analysts say.

The worry is that worsening outbreaks in the U.S. and elsewhere could choke off budding improvements in economies as governments ease up on pandemic restrictions.

Benchmark U.S. crude oil fell 55 cents to $39.15 in electronic trading on the New York Mercantile Exchange. It rose $1.21 to $39.70 a barrel on Monday. Brent crude oil for August delivery slipped 52 cents to $41.33 a barrel.

The dollar rose to 107.76 Japanese yen from 107.57 yen. The euro cost $1.1193, down from $1.1238.


AP Business Writer Joe McDonald in Beijing contributed.

7 Stocks That Prove Dividends Matter

Dividends can be an equalizing factor when comparing stocks. For example, you can be looking at one stock that is up 5% and another that is up 7% over a period of time. However, the stock that is up 5% pays a dividend while the one that pays 7% does not. That dividend factors into the stock’s total return. Therefore although the former would appear to offer a better return, the stock that pays a dividend may actually provide a higher total return.

Dividends are a portion of a company’s profit reflected as a percentage. However, this percentage changes with the company’s stock price. For that reason, a common mistake investors make is to chase a yield. But a company that pays a 4% dividend yield may be a far better investment than a company with an 8% yield. Here’s why.

The most important attribute of a dividend is its reliability. Getting a solid dividend one year has very little meaning if the company has to suspend, or cut, its dividend the next year. Investors want to own stocks in companies that have a solid history of paying a regular dividend. Another important consideration is a company’s ability to increase its dividend. This means that the company is increasing the amount of the dividend regardless of stock price. Companies that do this over a specific period of time have achieved a special status. Dividend Aristocrats are companies that have increased their dividend every year for at least the last 25 years. Dividend Kings have increased their dividends every year for at least the last 50 years.

In this presentation, we highlight seven companies that offer a nice dividend and the opportunity for decent growth.

Click on Continue to view the “7 Stocks That Prove Dividends Matter”.

View the "7 Stocks That Prove Dividends Matter".

30 Days of MarketBeat All Access for $1.00

Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools:

  • Best-in-Class Portfolio Monitoring

    View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. Compare your portfolio performance to leading indices and get personalized stock ideas based on your portfolio.

  • Stock Ideas and Recommendations

    Get daily stock ideas top-performing Wall Street analysts. Get short term trading ideas from the MarketBeat Idea Engine. View which stocks are hot on social media with MarketBeat's trending stocks report.

  • Advanced Stock Screeners and Research Tools

    Identify stocks that meet your criteria using seven unique stock screeners. See what's happening in the market right now with MarketBeat's real-time news feed. Export data to Excel for your own analysis.

Start Your Risk-Free Trial Subscription Here

Enter your email address below to receive a concise daily summary of analysts' upgrades, downgrades and new coverage with MarketBeat.com's FREE daily email newsletter.