World stocks and commodities rose yesterday, with stocks set to post their biggest weekly gain in over a month as investors seemed to shrug off uncertainty over tension in the Middle East and the prospect of a global trade war.
Global stock markets have had a whipsaw week, largely fuelled by US President Donald Trump’s tendency to change his mind over key policy and political issues.
The MSCI All-Country World Index, which tracks shares in 47 countries was up nearly 0.1 per cent on the day. It has gained nearly two per cent this week, its best weekly showing since March.
European hit new one-month highs, with the pan-European STOXX 600 index on track for its third straight week of gains, its longest winning streak since January. The beginnings of European companies’ first-quarter results were largely positive, though misses were badly punished.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan was up a slim 0.1 per cent, still up about two per cent on the week.
Overall, yesterday’s performance in stocks seemed to suggest investors were relieved at apparent suggestions from Mr Trump that a military strike on Syria may not be imminent.
The earnings season began in earnest yesterday with reports from JPMorgan Chase & Co, Citigroup Inc and Wells Fargo & Co.
Analysts expect quarterly profit for S&P 500 companies to rise 18.4 per cent from a year ago, in what would be the biggest gain in seven years, according to Thomson Reuters.
Investors had other reasons to fret, however.
Mixed data from China showed March exports unexpectedly fell 2.7 per cent from a year earlier while imports jumped more than forecast.
While the figures pointed to robust demand from the world’s top consumer of crude, copper and iron ore, they left the country with a rare trade deficit of $4.98 billion for the month, the first since last February.
Trade tensions also were not far from the surface, with analysts at Citi noting prolonged uncertainty will likely hurt open Asian economies such as Taiwan, Singapore and South Korea.
Meanwhile, spot gold was up 0.2 per cent at $1,337.04 an ounce and was set for a weekly gain of almost 0.4 per cent.
Oil prices edged lower, but were set for their biggest weekly gain since last July.
Yesterday, Brent crude futures fell 0.4 per cent to $71.75 per barrel. United States WTI crude futures fell 0.3 per cent to $66.84.