Global stocks gain as investors shrug off tech rout, eye Fed
Global stocks were higher Tuesday, with technology shares stabilizing after two days of bruising losses and as investors looked ahead to an expected interest rate increase by the U.S. Federal Reserve.
KEEPING SCORE: France's CAC 40 advanced 0.3 percent to 5,257 and Germany's DAX gained 0.5 percent to 12,751. Britain's FTSE 100 was the only index to slip, shedding 0.1 percent to 7,507 after a report showed inflation rose more than expected in the country due to the pound's recent falls. Futures showed Wall Street opening with modest gains. S&P futures added 0.2 percent while Dow futures added 0.1 percent.
ANALYST'S TAKE: Jingyi Pan, a market strategist at IG in Singapore, said the focus remained on technology stocks, which had fallen globally since late last week. "While the extent to which this decline may sustain remains uncertain at the current moment, the move has not triggered a more widespread decline," he said.
FED WATCH: The Federal Reserve will meet Tuesday and Wednesday, and investors expect the central bank to raise interest rates for the third time since December. Super-low unemployment, gains in factory output and other economic data pointing to a recovery in the U.S. economy have led investors to believe that the Fed will lift rates.
ASIA'S DAY: Asian markets finished mostly higher. Japan's Nikkei 225 dipped 0.1 percent to 19,898.75 but South Korea's Kospi rose 0.7 percent to 2,374.70. Hong Kong's Hang Seng advanced 0.6 percent to 25,852.10 while the Shanghai Composite Index climbed 0.4 percent to 3,153.74. Australia's S&P/ASX 200 jumped 1.7 percent to 5,772.80. Share benchmarks in Taiwan, Singapore and Indonesia were higher.
OIL: Benchmark U.S. crude fell 14 cents to $45.94 per barrel on electronic trading in New York Mercantile Exchange. The contract added 25 cents on Monday. Brent crude, used to price international oils, dropped 10 cents to $48.19 per barrel in London. It closed up 14 cents in the previous session.
CURRENCIES: The dollar rose to 110.01 yen from 109.95 and the euro strengthened to $1.1218 from $1.1204. The British pound stabilized after its recent tumble and was trading at $1.2732.