Global stocks rise on earnings’ reports

30/07/2015 06:00 AST

LONDON: US and European stocks advanced on better- than-estimated earnings, while Treasuries fell before a Federal Reserve decision on monetary policy.

Emerging-market shares rebounded and oil erased a loss. The Standard & Poor’s 500 Index gained 0.4 per cent at 10:40 a.m.

in New York, and the Stoxx Europe 600 Index advanced 0.9 per cent. The yield on 10-year Treasuries rose 4 basis points to 2.29 per cent.

Chinese shares led gains in developing nations. Crude rebounded after US stockpiles unexpectedly fell. Investors will be assessing the Fed’s post-meeting statement for signs that borrowing costs may be raised in September.

Earnings from companies including Bayer AG and PSA Peugeot Citroen topped projections and LVMH Moet Hennessy Louis Vuitton SE posted its biggest profit jump in three years. Facebook Inc. is scheduled to report results in the US.

“We’re going to see if there’s really been a shift in thinking for the Fed,” Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates Inc. in Bethlehem, Pennsylvania, said by phone.”With the softness we’ve seen recently, there’s been a little bit of skepticism building around whether a hike will take place as early as September.” Economists forecast the Fed will hold rates steady in a decision at 2 p.m. in Washington.

Chair Janet Yellen has emphasized that the timing of rate liftoff is less important than the subsequent pace of increases, which she said would be gradual. Greece’s debt crisis and recent turmoil in China’s stock market had raised concerns about global growth and added to speculation that the Fed may further delay a rate increase. Bonds Fall The 10-year note yield increased 4 basis point to 2.29 per cent.

The Treasury will auction $35 billion of five-year securities on Wednesday, together with $15 billion of floating- rate debt.

The S&P 500 is up 1.5 per cent in July through Tuesday, heading for its biggest monthly advance since February. The index rose 1.2 per cent yesterday after declining for four of the last five weeks, and had lost 2.9 per cent in the five sessions ending Monday as a Chinese stock rout spurred concern about the nation’s economic growth and some corporate earnings disappointed. Facebook and Whole Foods Market Inc. are among S&P 500 companies reporting earnings on Wednesday.

Of the gauge’s members that have reported results this season, about three- quarters beat profit estimates and half topped sales projections.

The Gulf Today