The Journal Gazette
Tuesday, September 15, 2020 10:30 am

Wall Street opens higher, following broad gains overseas

Associated Press


NEW YORK – Stocks are opening higher on Wall Street, building on gains made over the previous two days. The S&P 500 was up 0.9% early Tuesday. Markets were also higher overseas folllowing encouraging economic reports from China and Germany. Traders will be watching Apple, which is set to announce updates to its iPad and smartwatch later in the day. The Federal Reserve will also be in focus as it starts a two-day policy meeting. It’s the first gathering since the Fed revised its operating framework in ways that will likely keep short-term interest rates near zero for years to come.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

Global stock markets mostly rose on Tuesday as economic data in China and Germany improved and investors looked ahead to a policy meeting by the U.S. Federal Reserve.

Shares in major European and Asian markets rose though Tokyo closed slightly lower. On Wall Street, futures for the Dow and the S&P 500 were both 0.7% higher, suggesting the U.S. market will add to the previous day's gains.

The Shanghai Composite Index gained 0.5% to 3,295.68 after new figures showed that retail sales in the world's second biggest economy rose 0.5% in August over a year earlier for their first positive growth this year. The Chinese statistics agency cited it as a sign of “stable and continuous” economic recovery.

In Europe, sentiment got a further boost by a rise in the German ZEW index of economic confidence in September. The DAX in Frankfurt rose 0.3% to 13,236. The CAC 40 in France rose 0.5% to 5,076, while the FTSE 100 in London gained 1% to 6,089.

The Nikkei 225 in Tokyo fell 0.4% to 23,454.89 while the Hang Seng in Hong Kong added 0.4% to 24,734.71. The S&P-ASX 200 in Sydney was down less than 0.1% at 5,894.50.

India's Sensex advanced 0.4% to 38,903.72. Singapore and Bangkok gained while New Zealand and Jakarta retreated.

Tech stocks remain in focus after days of volatility. They rose Monday after Nvidia agreed to buy Softbank’s stake in chipmaker Arm Holdings for $40 billion.

Oracle climbed 4.3% after the software maker beat out Microsoft to become the “trusted technology provider” of Chinese-owned video app TikTok. The deal requires approval from the Trump administration, which deemed TikTok a security risk and demanded its sale to a U.S. owner.

In other deals, Gilead agreed to buy Immunomedics for $21 billion. Verizon purchased Tracfone for $6.25 billion and Alibaba invested $4 billion in Grab.

Looking ahead, investors will be watching the meeting of Federal Reserve policymakers this week, the first since they significantly revised the Fed’s operating framework in ways that will likely keep short-term interest rates near zero for years to come.

The focus will be on the statement that Fed policymakers release Wednesday and on the quarterly economic projections, which will for the first time include estimates for growth, unemployment and the Fed’s benchmark interest rate for 2023.

In energy markets, benchmark U.S. crude oil for October delivery rose 59 cents to $37.85 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 7 cents on Monday to $32.26. Brent crude oil for November delivery gained 50 cents to $40.11 per barrel in London. The contract dropped 22 cents in the previous session to $39.61.

The dollar edged down to 105.54 yen from Monday's 105.72 yen. The euro rose to $1.1893 from $1.1865.

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