Global stocks mixed after Wall Street gains

Joe McDonald, The Associated Press</span>
Published Monday, July 17, 2017 12:28AM EDT
Last Updated Monday, July 17, 2017 7:14AM EDT

BEIJING -- Global stock markets were mixed Monday after major Wall Street indexes hit new highs and China reported unexpectedly strong economic growth.

KEEPING SCORE: In early trading, London's FTSE 100 index rose 0.4 per cent to 7,410.96 and France's CAC 40 was little changed at 5,235.90. Germany's DAX shed 0.2 per cent to 12,600.48. On Friday, the FTSE 100 slid 0.5 per cent, the DAX lost 0.1 per cent and the CAC 40 was flat. Futures for the Dow Jones industrial average and the Standard & Poor's 500 index were unchanged.

ASIA'S DAY: Hong Kong's Hang Seng gained 0.3 per cent to 26,470.58 and Seoul's Kospi added 0.4 per cent to 2,425.10. The Shanghai Composite Index was off 1.4 per cent at 3,176.46, while Japanese markets were closed for a holiday. India's Sensex advanced 0.3 per cent to 32,104.77 and Australia's S&P ASX 200 shed 0.2 per cent to 5,755.50. Benchmarks in Singapore and Manila rose while Bangkok and Jakarta declined.

WALL STREET: Gains by big technology and health care companies pushed U.S. stocks higher for a third straight day on Friday, lifting the S&P 500, Dow and Russell 2000 index of smaller-company stocks to record highs. Energy companies advanced on higher oil prices. High-dividend stocks such as real estate companies and utilities posted big gains following a drop in bond yields. Investors brushed off a report showing U.S. retail sales declined in June and drew encouragement from data indicating industrial production rebounded. The S&P 500 gained 0.5 per cent, the Dow rose 0.4 per cent and the Nasdaq composite added 0.6 per cent.

CHINESE GROWTH: China's economic growth held steady at 6.9 per cent in the quarter ending in June, exceeding most forecasts. Growth was boosted by unexpectedly strong retail sales and trade, which offset softer investment. Forecasters warned that strength was unlikely to last because tighter controls on bank lending aimed at cooling a surge in debt will weigh on investment, a major component in growth.

CHINESE DEBT MANAGEMENT: President Xi Jinping called at a weekend meeting of Chinese leaders on financial reform to focus on containing risk and to "go back to the origin" of supporting real economic activity. Regulators are tightening controls on bank lending to cool surging debt that analysts cite as the biggest potential threat to economic growth. Analysts said Xi's comments suggest efforts to tighten regulation will be extended.

FED WATCH: Unexpectedly weak U.S. consumer inflation prompted analysts to question whether the Federal Reserve would be ready to go ahead with another possible interest rate hike. The consumer price index fell to 1.7 per cent in June from January's 2.3 per cent. "The Fed has hiked rates three times in three quarters but we no longer think it will go 4-4 in September," DBS Group said in a report. "The safe and probably wise thing to do is to sit tight -- wait and see how the data play out before continuing with interest rate normalization."

ENERGY: Benchmark U.S. crude gained 16 cents to $46.70 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 46 cents on Friday to close at $46.54. Brent crude, used to price international oils, added 7 cents to $48.98 in London. It advanced 49 cents the previous session to $48.91.

CURRENCY: The dollar rose to 112.59 yen from Friday's 112.52. The euro declined to $1.1449 from $1.1471.

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