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Global Markets Move Higher, Bond Yields Stabilize, China Export Data Better Than Expected

Thomas Hughes

The U.S. Futures Are Up In Early Trading

The U.S. futures are indicating a modestly higher open in early Thursday trading after global bond yields stabilized. The yield on the ten-year Treasury rebound from an earlier low as traders take profits. Despite the rise, the yield on the ten-year remains at/near a three-year low.

The Dow Jones Industrials are indicated up about 0.30% while the S&P 500 and NASDAQ Composite are slightly higher. Data from China helped support the market but it is likely a one-off event. Chinese exports rose an unexpected 3.3% as global manufacturers front-load their orders ahead of September’s new tariffs.

In stock news, shares of Disney advanced 1.0% after receiving an upgrade. Credit Suisse upgraded the stock to buy citing an expected successful launch of Disney+. Shares of Cardinal Health rose 3.0% after the healthcare company reported better than expected revenue and earnings. The company said there is still work to do but it is well-positioned for growth in an evolving healthcare landscape.

Kontoor Brands, the maker of Levi’s and other top-brand jeans, reported better than expected results and sent its shares moving higher. Norwegian Cruise Lines also beat expectations on high demand. The cruise line says full-year results will be weaker than expected because of Cuba-sailings cancellations.

European Indices Are Higher As Growth Fears Subside

The European indices are moving higher at midday as growth-related fears subside. Stabilizing bond-yields and the China data both help but traders should be warned the trade war and its effects are not over. The French CAC rose 1.20% in the early portion of Thursday’s session while the DAX and FTSE advanced 0.75% and 0.25%.

In stock news, shares of ThyssenKrupp gained nearly 3.0% despite falling short of expectations. The industrial/infrastructure giant also provided poor guidance but the market was expecting it. Adidas moved lower by -2.0% after it beat expectations for EPS. The shoemaker says revenue was weak and that sparked a selloff. Hargreaves Lansdown moved to the top of the rankings on its results. The company reported strong YOY revenue and EPS despite a scandal earlier in the year.

Chinese Export Data Supports Asian Markets

The Asian equities markets were broadly higher in Thursday trading after the release of Chinese export data. The Shanghai Composite led the advance with a gain of  0.93% while most others in the region gained 0.35% to 0.75%. While Chinese Exports were strong at +3.3% Imports were less robust. Imports fell -5.6% as the effects of new tariffs begins to be felt. The PBOC, in response to the escalating trade war, pinned the midpoint for the yuan above 7.000 for the second time this week. This is the lowest level since 2008 and is intended to counter the effects of tariffs.

This article was originally posted on FX Empire

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