Global markets follow Wall St higher as virus fears recede

Global stock markets followed Wall Street higher Thursday for a second day as optimism about an economic recovery appeared to outweigh concern over rising coronavirus cases and inflation.Market benchmarks in Frankfurt, Shanghai and Hong Kong advanced.

Global stock markets followed Wall Street higher Thursday for a second day as optimism about an economic recovery appeared to outweigh concern over rising coronavirus cases and inflation.

Market benchmarks in Frankfurt, Shanghai, and Hong Kong advanced. London opened down less than 0.1 percent. Japanese markets were closed for a holiday.

Wall Street futures rose after the S&P 500 index climbed 0.8 percent overnight. That put it on track for a weekly gain after rebounding from Monday's 1.6 percent loss.

Investors are wavering between optimism about a global recovery and unease that it might be delayed by the spread of the virus's more contagious delta variant.

They also worry central bankers might feel pressure to tame rising inflation by rolling back easy credit.

"The delta variant remains an ever-present downside risk for the markets in the near-term,'' said Craig Erlam of Oanda in a report, "but as long as inflation remains only a temporary problem, it also keeps central bank hawks at bay.'' In early trading, the DAX in Frankfurt rose 0.9 percent to 15,558.70 and the CAC 40 in Paris was 0.6 percent higher at 6,504.94. The FTSE 100 in London shed less than 0.1 percent to 6,995.42.

On Wall Street, futures for the S&P 500 index and the Dow Jones Industrial Average were up 0.1 percent.

The S&P 500's rise Wednesday was driven by tech stocks, banks, and companies that rely on consumer spending. Energy stocks also rose as the price of US crude oil marched higher. Utilities and real estate stocks were among the decliners.

The Dow gained 0.8% and the Nasdaq composite added 0.9 percent.

In Asia on Thursday, the Shanghai Composite Index rose 0.3 percent to 3,574.73 and the Hang Seng in Hong Kong surged 1.8 percent to 27,723.84.

The Kospi in Seoul added 1.1 percent to 3,250.21 and the S&P-ASX 200 in Sydney rose 1.1 percent to 7,386.40.

India's Sensex advanced 1.2 percent to 52,793.16. New Zealand and Southeast Asian markets gained.

US stocks, boosted by unexpectedly strong corporate profit reports, have gained in choppy trading despite coronavirus uncertainties.

More than 80 percent of companies in the S&P 500 that reported results so far have beaten analysts' forecasts, according to FactSet. More than 100 are due to announce next week.

In energy markets, benchmark US crude rose 40 cents to USD 70.70 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose from USD 2.88 on Wednesday to USD 70.30. Brent crude, used to price international oils, added 33 cents to USD 72.56 per barrel in London. It advanced USD 2.88 the previous session to USD 72.23.

The dollar gained to 110.32 from Wednesday's 110.28 yen. The euro declined to USD 1.1788 from USD 1.1799.