Markets advance as traders weigh recovery against Delta

LONDON: Global stock markets rose Wednesday as investors digested upbeat survey data and weighed global recovery against the impact of the fast-spreading Delta Covid variant.

London stocks won 0.7 percent in late morning deals, while Frankfurt added 0.3 percent and Paris jumped 1.0 percent just after midday in the eurozone, following earlier Asia gains.

World oil prices increased before a key output gathering of OPEC and other crude producing nations, while the dollar steadied ahead of key US employment data.

"European markets are on the rise," said Joshua Mahony, senior market analyst at online trading firm IG.

"We have largely seen upward momentum for growth in European manufacturing," he added in reference to bright PMI survey data for the region.

However, economic optimism continues to be tested by the stuttering rollout of vaccines and a spike in infections in some countries, as well as China's drive to tighten its grip on the world's number two economy with a swathe of new regulations for private enterprises.

Federal Reserve boss Jerome Powell's indication Friday that the central bank will take it easy in winding back its ultra-loose monetary policy -- and even more cautious in hiking interest rates -- has helped fuel a healthy run-up this week.

European stocks start September with gains, shake off growth worries

Still, Wall Street finished Tuesday on a tepid note after a closely watched survey showed US consumer confidence saw a sharp drop in August to its lowest level in six months owing to concerns about Delta and surging prices.

While the United States remains largely open thanks to a successful vaccine rollout, other countries that have administered fewer jabs are struggling with fresh waves of Covid and are being forced to impose strict containment measures.

This has tempered hopes that the blockbuster economic recovery seen at the start of the year can be maintained.

Asia started the day on a mixed note but most major markets later recovered, with traders appearing to brush off data indicating Chinese factory activity contracted last month.

Focus is now on the release Friday of US jobs data, which could have a huge bearing on when the Fed decides to start winding down its bond-buying financial support programme.

Key figures around 1015 GMT

London - FTSE 100: UP 0.7 percent at 7,165.90 points

Frankfurt - DAX 30: UP 0.3 percent at 15,879.50

Paris - CAC 40: UP 1.0 percent at 6,749.68

EURO STOXX 50: UP 0.9 percent at 4,233.66

Tokyo - Nikkei 225: UP 1.3 percent at 28,451.02 (close)

Hong Kong - Hang Seng Index: UP 0.6 percent at 26,028.29 (close)

Shanghai - Composite: UP 0.7 percent at 3,567.10 (close)

New York - Dow: DOWN 0.1 percent at 35,360.73 (close)

Euro/dollar: UP at $1.1814 from $1.1809

Pound/dollar: UP at $1.3757 from $1.3755

Euro/pound: UP at 85.88 pence from 85.86 pence

Dollar/yen: UP at 110.37 yen from 110.02 yen

West Texas Intermediate: UP 0.2 percent at $68.60 per barrel

Brent North Sea crude: UP 0.2 percent at $71.77 per barrel