Global stocks climb amidst looming uncertainty
Saturday, 18 October 2008
LONDON, Oct 17 (Agencies) - Stock markets climbed around the world on Friday, taking their lead from Wall St's late rally the previous session and helped by easing interbank lending rates, lower oil prices and encouraging earnings from technology firms.
But extreme market volatility remained the dominant feature as stocks were buffeted by both fears of deep economic recession and hopes the financial crunch is finally starting to ease following dramatic government and central intervention in the banking system over the past week.
However, on Friday US shares opened 1.7 per cent lower after official figures showed a sharper than expected deterioration in the number of new homes being built.
European shares indexes have fluctuated throughout the day and were trading higher by the early afternoon.
The FTSE 100 index of leading British shares was 42.03 points, or 1.1 percent, higher at 3,903.42, while Germany's DAX was up 11.38 points, or 0.3 percent, at 4,634.19. France's CAC-40 was up 37.28 points, or 1.2 percent, at 3,218.28.
Asian shares gained tentatively on Friday, recovering some of the steep losses in the prior session, after encouraging earnings signals from technology firms such as IBM eased some of the concerns over a global recession.
The MSCI index of Asia-Pacific stocks outside Japan rose 0.6 percent as of 9:55 p.m. EDT, following an 8.2 per cent slump in the previous day.
The index has advanced 0.4 per cent for the week as of Thursday, and is headed for its first weekly gain since the end of August.
Japan's Nikkei average rose 1.4 per cent, clawing back after falling 11.4 percent on Thursday in its biggest loss since the 1987 crash.
Singapore's stocks rose 0.3 per cent, while Shanghai's main index advanced 0.7 percent.
But other major indexes in the region fell. South Korea's KOSPI dropped 3 percent amid continued nervousness about the health of the country's banking sector.
Taiwan's index was down more than 2 per cent, while Australian stocks erased earlier gains to fall 0.7 per cent.
Meanwhile, Oil prices rose Friday after heavy losses a day earlier on speculation that the OPEC crude producers' cartel could cut production at an emergency meeting next week, traders said. New York's main futures contract, light sweet crude for delivery in November, was up 1.14 dollars at 70.99 dollars a barrel in electronic trade.
The contract had tumbled 4.69 dollars to 69.85 dollars Thursday, the first time the benchmark contract closed below the 70-dollar level since August 2007. Elsewhere Friday, London's Brent North Sea crude for delivery in December rose 75 cents to 68.59 dollars a barrel. The November contract expired Thursday after slumping 4.48 dollars 66.32.
But extreme market volatility remained the dominant feature as stocks were buffeted by both fears of deep economic recession and hopes the financial crunch is finally starting to ease following dramatic government and central intervention in the banking system over the past week.
However, on Friday US shares opened 1.7 per cent lower after official figures showed a sharper than expected deterioration in the number of new homes being built.
European shares indexes have fluctuated throughout the day and were trading higher by the early afternoon.
The FTSE 100 index of leading British shares was 42.03 points, or 1.1 percent, higher at 3,903.42, while Germany's DAX was up 11.38 points, or 0.3 percent, at 4,634.19. France's CAC-40 was up 37.28 points, or 1.2 percent, at 3,218.28.
Asian shares gained tentatively on Friday, recovering some of the steep losses in the prior session, after encouraging earnings signals from technology firms such as IBM eased some of the concerns over a global recession.
The MSCI index of Asia-Pacific stocks outside Japan rose 0.6 percent as of 9:55 p.m. EDT, following an 8.2 per cent slump in the previous day.
The index has advanced 0.4 per cent for the week as of Thursday, and is headed for its first weekly gain since the end of August.
Japan's Nikkei average rose 1.4 per cent, clawing back after falling 11.4 percent on Thursday in its biggest loss since the 1987 crash.
Singapore's stocks rose 0.3 per cent, while Shanghai's main index advanced 0.7 percent.
But other major indexes in the region fell. South Korea's KOSPI dropped 3 percent amid continued nervousness about the health of the country's banking sector.
Taiwan's index was down more than 2 per cent, while Australian stocks erased earlier gains to fall 0.7 per cent.
Meanwhile, Oil prices rose Friday after heavy losses a day earlier on speculation that the OPEC crude producers' cartel could cut production at an emergency meeting next week, traders said. New York's main futures contract, light sweet crude for delivery in November, was up 1.14 dollars at 70.99 dollars a barrel in electronic trade.
The contract had tumbled 4.69 dollars to 69.85 dollars Thursday, the first time the benchmark contract closed below the 70-dollar level since August 2007. Elsewhere Friday, London's Brent North Sea crude for delivery in December rose 75 cents to 68.59 dollars a barrel. The November contract expired Thursday after slumping 4.48 dollars 66.32.