Global stocks rise even as China's manufacturing slows

Monday, August 2, 2021 | Annabelle Liang, Associated Press


A woman walks past a bank's electronic board showing the Hong Kong share index at Hong Kong Stock Exchange in Hong Kong Monday, Aug. 2, 2021. Asian stocks have started the week higher, even as China reported a slowdown in manufacturing activity and countries in the region continue to be hammered by the delta variant. (AP Photo/Vincent Yu)

SINGAPORE (AP) — Global stocks started the week higher Monday, even as China reported a slowdown in manufacturing activity and countries continued to be hammered by the delta variant.

Investors were spurred by encouraging earnings on Wall Street, which recently wrapped up another strong month. The S&P 500 notched six straight months of gains ending July.

France’s CAC 40 added 1% in early trading to 6,677.27 while Germany’s DAX gained 0.4% to 15,606.27. Britain’s FTSE 100 rose 0.9% to 7,096.59.

U.S. shares were set for a positive opening, with S&P 500 futures advancing 0.6% to 4,414.75. Dow futures climbed 0.5% to 35,007.

A notable 89% of companies on the S&P 500 have beaten earnings expectations, but it is unclear if the market upswing will persist, Yeap Jun Rong of IG said.

“Guidance from several big tech companies is pointing to slower growth ahead and markets may need to find another catalyst to drive further upside,” he added.

The moves follow a buoyant Asian session, where Tokyo's Nikkei 225 jumped 1.8% to close at 27,781.02. The Kospi in Seoul rose 0.7% to 3,223.04, while the Hang Seng in Hong Kong climbed 1.1% to 26,235.80.

The Shanghai Composite index added 2% to 3,464.29 and Australia’s S&P/ASX 200 was up 1.3% at 7,491.40. Benchmarks mostly rose across the region.

The gains in China follow data released Saturday by the National Bureau of Statistics showing the country’s official purchasing managers’ index fell to 50.4 in July from 50.9 in June. Numbers above 50 indicate expansion on the 100-point scale.

On Monday, a monthly manufacturing survey issued by a business magazine, Caixin, put July’s reading at 50.3. That was down from June’s 51.3.

The official figure was the lowest since February 2020, when a lockdown to prevent the spread of the coronavirus was in place. Analysts had expected a smaller easing of manufacturing activity.

China is also dealing with an outbreak of the delta variant of the coronavirus, which has already been running rampant in many other Asian nations.

Traders are also watching a crackdown by Beijing on Chinese tech companies, even as authorities moved to soothe fears.

Games and social media giant Tencent Holding Ltd. fell 0.8% in Hong Kong on Monday. However, internet search giant Baidu Inc. was up 2.2% and e-commerce giant Alibaba Group gained 1.5%.

Hong Kong, Shanghai and Shenzhen indexes eased in early trade, before “abruptly reversing course” as foreign investors pumped almost a billion dollars in markets, Jeffrey Halley of Oanda said in a report.

“That has seen a stunning reversal as regulatory risk has been forgotten,” Halley added.

In other trading, U.S. benchmark crude oil lost 65 cents to $73.30 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil declined 62 cents to $74.79.

The U.S. dollar rose to 109.65 Japanese yen from 109.62 yen on Friday. The euro advanced to $1.1888 from $1.1875.

Should you invest $1,000 in right now?

Before you consider , you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and wasn't on the list.

While currently has a "" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.