Global Stocks Broadly Steady, Shrugging Off Latest China Declines

By Tommy Stubbington 

        Stocks around the world were broadly steady Friday, shrugging off the latest declines in China's markets.
        Shares in the U.S. and Europe had fallen sharply at the start of the week as a slump in Chinese equities spilled over into global markets, but have since more than recovered those losses as investors turned to corporate earnings and clues on the timing of a Federal Reserve rate increase.
        The Shanghai Composite Index fell again on Friday, closing out its worst month in nearly six years.
        But markets elsewhere showed little reaction to the latest decline. Japan's Nikkei index rose 0.3%.
        In Europe, the Stoxx Europe 600 was little changed midmorning, on course for a weekly gain.
        U.S. markets have also rebounded. That said, stocks on Wall Street ended flat on Thursday after data showing the U.S. economy expanded at a slower pace than expected in the second quarter.
        Stock futures indicated a 0.1% opening rise for the S&P 500. Changes in futures aren't necessarily reflected in market moves after the opening bell.
        In Europe, investors focused on the latest batch of corporate earnings.
        Shares in Airbus Group climbed after the plane maker reported a rise in second-quarter profit.
        French bank BNP Paribas and chemical company Arkema both rose after better-than-expected results.
        Steel pipe maker Vallourec fell after reporting a loss for the first half of the year.
        Among companies on the Stoxx Europe 600 that have so far reported second-quarter results, 54% have exceeded profit expectations, according to FactSet data. That compares with 50% in the first quarter.
        "The earnings season in Europe has been pretty good," said Christian Stocker, an analyst at UniCredit.
        But concerns over the Chinese economy are likely to remain, and could hold back shares in mining companies and car makers in the coming months, he said.
        In currency markets, the euro was steady against the dollar at $1.0936.
        In commodities, Brent crude oil was 0.9% lower at $52.82 a barrel. Gold was down 0.6% at $1,081.90 a troy ounce.
        Write to Tommy Stubbington at tommy.stubbington@wsj.com
        (END) Dow Jones Newswires
        July 31, 2015 04:44 ET (08:44 GMT)

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