Global shares edge higher on earnings, China data

Mon Jul 15, 2013 4:16pm EDT
 
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By Ryan Vlastelica

NEW YORK (Reuters) - Stock markets around the world edged higher on Monday as a milder-than-expected slowdown in China's economic growth lifted sentiment and early reads on U.S. earnings were positive.

Gains were limited by a lower-than-expected read on U.S. retail sales, a sign that the world's largest economy continues to have areas of weakness.

The U.S. dollar edged slightly higher while the euro was modestly lower. Yields on the 10-year U.S. Treasury note fell and Bunds slipped.

European stocks .FTEU3 rose 0.4 percent while the S&P 500 ended higher for an eighth straight session, its longest streak since January.

Shares were supported by strong earnings at Citigroup Inc. C.N, which rose 2 percent to $51.81. The S&P financial sector .SPSY gained 0.4 percent.

That financials are "finally doing well in a convincing way is a major bullish indicator. We believe the economy is getting better, so they should be doing well," said Nicholas Colas, chief market strategist at the ConvergEx Group in New York. "I'm impressed by the rally today."

While earnings for the second quarter have largely come in stronger than expected so far, only a small percentage of S&P 500 components have reported to date. This week will bring results from dozens of companies, including numerous Dow components.

U.S. shares were also boosted by Boeing Co. BA.N, which jumped 3.7 percent to $105.66 as an investigation of a fire that broke out on one of the company's 787 Dreamliners did not blame the plane's batteries.   Continued...

 
Traders work at the trading post that trades Citigroup stock on the floor of the New York Stock Exchange, in this October 16, 2012 file photo. REUTERS/Brendan McDermid/Files