By Hilary Russ
NEW YORK (Reuters) - Stock markets around the world bounced back on Thursday, with U.S. gains led by merger activity and earnings optimism that offset concerns over an escalating U.S. trade battle with China.
Metals also rebounded, with bargain-hunting investors scrambling to buy, while oil prices flailed around after clawing back big losses from the day before.
Stocks on Wall Street got a boost from technology and industrial shares. CA Inc
There was also some relief for markets as U.S. President Donald Trump came out of a meeting of the NATO military alliance in Belgium with a positive assessment after a string of earlier barbs.
"We had a fantastic meeting at the end," Trump told reporters. "Very unified, very strong, no problem."
The Dow Jones Industrial Average <.DJI> rose 196.76 points, or 0.8 percent, to 24,897.21, the S&P 500 <.SPX> gained 20.69 points, or 0.75 percent, to 2,794.71 and the Nasdaq Composite <.IXIC> added 97.17 points, or 1.26 percent, to 7,813.78.
"While markets have typically reacted negatively to any escalation on trade, the overall impact has been relatively modest under the circumstances which suggests investors are far from panic mode right now," Craig Erlam, Oanda senior market analyst, said in a note.
The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.78 percent and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.52 percent.
Positive U.S. jobless data on Wednesday provided a market boost, with labour market conditions remaining robust in early July.
In addition, a consumer prices report indicated the underlying trend continued to point to a steady buildup of inflation pressure that could keep the Federal Reserve on a path of gradual interest rate hikes.
The inflation data also boosted the U.S. dollar, which rose to a six-month high against the Japanese yen
In part, currency investors may see positive implications for the dollar from a trade war, as the United States would be better equipped to weather a slowdown in trade than other major economies.
The Japanese yen
Oil had a wild ride since the prior session, when prices had their biggest one-day fall in two years. But they steadied on Thursday despite a warning from the International Energy Agency (IEA) that the world's oil supply cushion "might be stretched to the limit" due to production losses.
Brent crude futures
Metals prices rebounded after a meltdown following Trump's threats for 10 percent tariffs on another $200 billion of Chinese goods.
(Additional reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru; Lucia Mutikani in Washington; Kate Duguid and Jessica Resnick-Ault in New York; Editing by Bernadette Baum and Nick Zieminski)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Updated Date: Jul 13, 2018 01:05 AM