World stocks mixed on China worries, US earnings
AP and AFP
April 23, 2014, 12:08 am TWN
HONG KONG -- World stocks fluctuated Tuesday as a Wall Street rally powered by positive earnings reports offset investor cautiousness before a report on Chinese manufacturing and possible sanctions against Russia over Ukraine.
In early European trading, Germany's DAX rose 1 percent to 9,503.27 while France's CAC 40 added 0.6 percent to 4,457.66. The FTSE 100 index of leading British companies rose 0.8 percent to 6,680.26.
U.S. stocks were poised to edge lower. Dow futures dipped less than 0.1 percent to 16,364.00 while broader S&P futures declined less than 0.1 percent to 1,863.70.
Asian stocks got a small lift after the U.S. stock market turned in its longest winning streak in half a year as earnings season kicked off on Monday with companies such as toy maker Hasbro and online video service Netflix reporting healthy profits.
But sentiment was restrained ahead of a preliminary purchasing managers' index report by HSBC on activity in China's huge manufacturing sector expected Wednesday that could provide further evidence of a slowdown in the world's second-biggest economy.
"An improvement in risk appetite through U.S. hours yesterday did not make it through to the Asian session intact," strategists at Rabobank said in a report.
In a sign that Chinese authorities could end a freeze on IPOs, the securities regulator posted prospectuses for 28 companies over the weekend, the report said, "sparking concerns that existing equities could be sold to free up funds. Nervousness over this week's forthcoming release of the HSBC manufacturing PMI index was also cited as a reason for concern."
In Asian markets, Tokyo gave up early gains as the yen reversed course against the dollar, with the Nikkei ending 0.85 percent lower, giving up 123.61 points to finish at 14,388.77. Hong Kong ended down 0.13 percent, or 29.56 points, at 22,730.68.