U.S. stocks hit one-month high on bank results; pound up on UK PM confidence vote
By Caroline Valetkevitch NEW YORK (Reuters) - World stock markets rose on Wednesday, with Wall Street's major indexes hitting one-month highs after strong earnings from Bank of America Corp and Goldman Sachs, while the pound rose after British Prime Minister Theresa May's government won a confidence vote in parliament. May can now try to build consensus on an agreement on Britain's departure from the European Union. The confidence vote followed the parliamentary defeat of May's Brexit deal late Tuesday.
By Caroline Valetkevitch
NEW YORK (Reuters) - World stock markets rose on Wednesday, with Wall Street's major indexes hitting one-month highs after strong earnings from Bank of America Corp and Goldman Sachs, while the pound rose after British Prime Minister Theresa May's government won a confidence vote in parliament.
May can now try to build consensus on an agreement on Britain's departure from the European Union. The confidence vote followed the parliamentary defeat of May's Brexit deal late Tuesday.
Hopes for a softer Brexit, perhaps incorporating the Labour Party's idea of a customs union, gave some support to the pound.
"Sterling has jumped on the back of this because now we are looking at the possibilities of other parties coming to Theresa May and work with her on the issue of Brexit. The future path will be very much dependent on the promises she makes with cross parties," Naeem Aslam, chief market analyst at Think Markets UK Ltd in London, wrote in a note following the vote.
Stocks held their gains following the vote. MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.18 percent.
On Wall Street, results from Bank of America
"It's still way early, but so far the tone has been good," said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.
"The fact that the banks are a little more sensitive certainly to interest rates and the yield curve and business activity, it gives a decent read on the economy."
The Dow Jones Industrial Average <.DJI> rose 141.57 points, or 0.59 percent, to 24,207.16, the S&P 500 <.SPX> gained 5.8 points, or 0.22 percent, to 2,616.1 and the Nasdaq Composite <.IXIC> added 10.86 points, or 0.15 percent, to 7,034.69.
Investors also digested a Wall Street Journal report that federal prosecutors are investigating Huawei Technologies, the world's largest telecommunications equipment maker, for allegedly stealing trade secrets from U.S. businesses and could soon issue an indictment.
The pan-European STOXX 600 index <.STOXX> rose 0.54 percent.
The dollar rose against the euro as the euro zone single currency was pushed lower by worries about the zone's economy, with the euro
Data this week showed Germany barely escaped a recession in the second half of 2018. On Tuesday, European Central Bank chief Mario Draghi warned the euro zone economy was weaker than anticipated.
U.S. Treasury yields climbed as the confidence vote and stock market gains reduced safety bids on the bond market.
Benchmark 10-year notes
Oil prices also gained, boosted by the U.S. equity market rally and a supply cut agreement by OPEC+.
For Reuters Live Markets blog on European and UK stock markets, please click on: [LIVE/]
(Additional reporting by Tom Wilson in London; Editing by James Dalgleish and David Gregorio)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.