Global stocks rose with the Dow finishing at its fifth straight record

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Global stocks rose on Tuesday, with the Dow finishing at its fifth straight record, following a round of generally solid economic data and earnings.

Analysts attributed the gains to strong international economic data, including reports showing euro zone growth accelerated slightly in the second quarter and Chinese manufacturing activity rose in Jul, reports BSS.

US economic data were mixed, however. A key measure of inflation was flat in June for the second straight month, while the annual rate declined.

Manufacturing activity continued to expand in July, but at a slightly slower pace than in June, according to the Institute for Supply Management.

But US earnings have been strong. Through July 28, companies in the S&P 500 earned 9.1 percent more in the second quarter compared with the year-ago period, according to Factset.

The Dow rose 0.3 percent to 21,963.92, its fifth straight record, after getting to within 10 points of hitting 22,000 for the first time.

“It’s a continuation of the bullish momentum,” said Karl Haeling of LBBW. “Earnings are good.”

London’s FTSE 100 rose 0.7 percent, with engines-maker Rolls-Royce shooting over 10 percent higher after exceeding expectations by posting a half-year pre- tax profit of o1.94 billion ($2.57 billion), traders said.

Rolls topped the FTSE with a gain of 10.3 percent to 979 pence. Energy giant BP, which announced a return to profit, jumped 2.4 percent.

Eurozone stock markets also rose, with Paris up 0.7 percent and Frankfurt jumping 1.1 percent higher as data showed growth in the bloc accelerating slightly in the second quarter to 0.6 percent.

Asian stock markets meanwhile started the month on a high, boosted by strong earnings results and gathering optimism over the global economy.

Equity indexes from Shanghai to Seoul chalked up gains, with confidence fueled by positive Chinese manufacturing data and figures showing South Korean exports surged 20 percent in July from a year earlier.

Sydney’s main index recorded gains of almost one percent after Australia’s central bank held interest rates at a record low of 1.50 percent.

But the central bank warned that the strengthening “Aussie” was hurting an already soft domestic economy. Oil prices fell with the WTI contract dropping back below $50 per barrel, having climbed above it on Monday for the first time since May amid optimism that output curbs are cutting back oversupply and reducing stockpiles.


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