Wall Street opens higher as North Korea tension eases

Cornelia Mascio
Agosto 20, 2017

A solid quarter of corporate earnings around the world, stronger-than-expected economic growth in Japan and lessened fears of conflict between North Korea and the USA helped stocks rise Monday, some traders and investors said.

Global stocks lost almost US$1 trillion (S$1.38 trillion) last week after President Donald Trump warned North Korea that it would face "fire and fury" if it threatened the United States, leading to a war of words between Pyongyang and Washington.

The Nasdaq Composite was up 75.78 points, or 1.21 percent, at 6,332.33.

US stocks rallied Monday as technology companies and banks helped companies regain a lot of the ground they lost last week, although the calm that has defined the market this year wasn't quite restored.

Apple and Microsoft each rose 1.5 percent and Facebook climbed 1.6 percent. Oil prices fell as a slowdown in Chinese refining raised concerns about demand in the world's second-biggest consumer, while an increase in United States drilling capacity could deepen a global supply glut.

Alibaba was up about 1.7 percent after Dan Loeb's Third Point bought 4.5 million shares in the Chinese e-commerce giant. The Swiss franc extended its losses after shedding about 1.1 percent against the dollar on Monday, its biggest daily fall since July 27.

The Nikkei share average rallied 1.1 percent to 19,753.31, after falling 1.0 percent on the previous day to hit the lowest closing level since May 2.

Oil prices tumbled more than 2.5 percent on Monday in volatile trade, as dollar strength and weak domestic demand data in China hammered prices that had received a short-lived boost on concerns about potential reductions in crude supply from Libya. The Nasdaq composite rose 75 points, or 1.2 percent, to 6,332.

The CBOE Volatility index, Wall Street's fear gauge, fell more than 3 points after it spiked to a nine-month high last week. That has helped limit both the scale and duration of selloffs in recent months, keeping major indexes near their all-time highs.

Base-metal miner Teck Resources Ltd ended up 5.1 percent at C$29.76, while First Quantum Minerals Ltd rose 9.7 percent to C$13.41 and HudBay Minerals Inc jumped 11.8 percent to C$10.26.

Nearly 90 percent of the Standard & Poor's 500 index finished.

The Dow Jones industrials rose 128 points, or 0.6 percent, to 21,988.

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