Ukraine, Egypt explore preferential trade deal: Zelenskyy    Egypt, Russia's Rosatom review grid readiness for El-Dabaa nuclear plant    Mastercard Unveils AI-Powered Card Fraud Prevention Service in EEMEA Region, Starting from Egypt    Global tour for Korean 'K-Comics' launches in Cairo with 'Hellbound' exhibition    China's factory output expands in June '25    Egyptian pound climbs against dollar at Wednesday's close    New accords on trade, security strengthen Egypt-Oman Relations    Egypt launches public-private partnership to curb c-sections, improve maternal, child health    Gaza under Israeli siege as death toll mounts, famine looms    EMRA, Elsewedy sign partnership to explore, develop phosphate reserves in Sebaiya    Philip Morris Misr announces new price list effective 1 July    Egypt Post discusses enhanced cooperation with Ivorian counterpart    Egypt's Environment Minister calls for stronger action on desertification, climate resilience in Africa    Egypt in diplomatic push for Gaza truce, Iran-Israel de-escalation    Egypt teams up with private sector to boost university rankings    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Egypt condemns deadly terrorist attack in Niger    Egypt, Tunisia discuss boosting healthcare cooperation        Egypt's EHA, Schneider Electric sign MoU on sustainable infrastructure    Sisi launches new support initiative for families of war, terrorism victims    Grand Egyptian Museum opening delayed to Q4    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Egypt discovers three New Kingdom tombs in Luxor's Dra' Abu El-Naga    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    Egypt's Democratic Generation Party Evaluates 84 Candidates Ahead of Parliamentary Vote    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Dow jumps over 100 points, snaps 4-day fall as Turkish lira rebounds from record low
Published in Amwal Al Ghad on 15 - 08 - 2018

U.S. stocks rose on Tuesday as a rebound in the Turkish lira from an all-time low lifted investor sentiment. The Dow Jones Industrial Average rose 112.22 points to close at 25,299.92, while the S&P 500 gained 0.6 percent to 2,839.96. Both indexes also snapped four-day losing streaks. The Nasdaq Composite advanced 0.7 percent, closing at 7,870.89.
Tech shares contributed to the gains as Apple and Amazon rose 0.4 percent and 1.2 percent, respectively. Meanwhile, bank stocks rose as Goldman Sachs, Citigroup and Morgan Stanley all closed more than 1 percent higher.
The lira rose about 8 percent to 6.36 after falling to a record-low 7.24 per dollar on Monday. The currency has been under pressure recently as market watchers became jittery over rising tensions between Turkey and the U.S. Last week, U.S. President Donald Trump said that he supported doubling metal tariffs on Turkey.
Jeremy Klein of FBN Securities thinks the recent decline in U.S. stocks related to Turkey's turmoil will be short lived. "Turkey is not a member of the European Union or the euro zone, so it has less hooks into the European banks, which means less trouble for us," said Klein, the firm's chief market strategist. "I think it will be well contained."
Tensions between the two countries intensified after a Turkish delegation left Washington last week with no apparent progress on the detention of U.S. pastor Andrew Brunson, who is charged with supporting a group blamed for an attempted coup in 2016.
Turkey is also dealing with an economic tailspin as inflation has surged there recently. Last month, Turkey's inflation rate hit 16 percent, well above the central bank's 5 percent target. The financial troubles have sparked fear of contagion across Europe.
"This is going to continue for some time," said Lale Akoner, market strategist at BNY Mellon Investment Management, noting Turkey has to contend with tightening monetary policy around the world as well as key fundamental issues. They have "a huge current account deficit relative to their GDP and surging inflation."
"The reason the lira is bouncing is because the finance minister said he would talk to foreign investors," Akoner said. "The fact that he's willing to talk is good," but the problems remain.
Emerging-market shares followed the lira higher. The iShares MSCI Emerging Markets exchange-traded fund rose about 0.4 percent, ending a four-day slide. Turkish stocks led the gains in emerging markets, as the iShares MSCI Turkey ETF surged 11.3 percent, notching its biggest one-day gain since 2008.
Home Depot reported second-quarter earnings and revenue easily topped Wall Street estimates. The company also raised its full-year earnings outlook. The stock briefly traded higher before falling 0.5 percent.
The Dow component is the latest company to report better-than-expected quarterly earnings in what has been a very strong reporting season. Through Tuesday morning, 76.84 percent of S&P 500 companies that have topped analysts' earnings estimates, according to FactSet. Corporate earnings have grown more than 24 percent for the second quarter on a year-over-year basis.
"Considering the [second-quarter] 2018 sales and earnings beat and growth rates, ... there are not many negatives you can legitimately say about overall earnings at this point," said Nick Raich, CEO of The Earnings Scout.
Source: CNBC


Clic here to read the story from its source.