Markets rise as investors await Yellen speech


New York – World markets ventured higher on Tuesday, as eurozone data encouraged a measure of optimism and anticipation built for a speech due Friday from the head of the US central bank.

Investors are looking to a speech on Saturday from Federal Reserve boss Janet Yellen (pictured) for insights into the state of the US economy and any plans for an interest rise (AFP Photo/Win McNamee)

Janet Yellen, chair of the Federal Reserve, will deliver remarks at an annual conference on monetary policy, with investors keen for any indication of what near-term interest rate decisions will be.

In New York, major indices rose in cautious trade while Best Buy, an electronics retail chain, jumped 19.4 percent on stronger-than-expected second-quarter profits.

European stock markets were also up as the Markit composite purchasing managers index rose to a seven-month high, suggesting Europe’s single market had withstood Britain’s surprise vote to leave in June better than feared.

In New York, the Dow Jones Industrial Average was up 0.1 percent, the broader S&P 500 added 0.2 percent and the Nasdaq Composite gained 0.3 percent.

Frankfurt’s DAX 30 stocks index added 1.0 percent and the Paris CAC 40 gained 0.7 percent, while London’s main FTSE-100 index rose 0.6 percent.

“In the newsflow, nothing gave anyone a reason to sell or to do too much in the market,” said Mace Blicksilver of Marblehead Asset Management.

“We have had a gentle breeze up since late June. And at the moment, there is nothing to slow it.”

– Few Brexit woes so far –

The euro meanwhile rose against the dollar.

“The eurozone recovery continues to weather the Brexit shock rather unscathed,” said Edoardo Campanella of UniCredit Research.

“All in all, today’s (Markit) survey is reassuring, although uncertainty about future growth developments remain high.”

Capital Economics suggested that it meant the consequences of Brexit might not be as dire as initially feared. But the firm warned that sagging eurozone consumer confidence could hit household spending.

“Looking ahead, we expect household spending growth to continue to slow, as the boost to consumers’ real incomes from the previous large falls in energy prices fades,” Capital Economics said.

Shares in Germany’s embattled car giant Volkswagen closed up 2.4 percent at 122.9 euros after the group reached a deal with suppliers to restart deliveries — after a row over contracts forced VW to halt production at several plants.

– Key figures at 2100 GMT –

New York – DOW: UP 0.1 percent at 18,547.30 (close)

New York – S&P 500: UP 0.2 percent at 2,186.90 (close)

New York – Nasdaq: UP 0.3 percent at 5,260.08 (close)

London – FTSE 100: UP 0.6 percent at 6,868.5 points (close)

Frankfurt – DAX 30: UP 1.0 percent at 10,592.9 (close)

Paris – CAC 40: UP 0.7 percent at 4,421.4 (close)

EURO STOXX 50: UP 1.1 percent at 2,993.73 (close)

Tokyo – Nikkei 225: DOWN 0.6 percent at 16,497.36 (close)

Shanghai – Composite: UP 0.2 percent at 3,089.71 (close)

Hong Kong – Hang Seng: UP 1.02 points at 22,998.93 (close)

Euro/dollar: DOWN at $1.1307 from $1.1322 Monday

Dollar/yen: DOWN at 100.23 yen from 100.32 yen

Pound/dollar: UP at $1.3194 from $1.3137



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