NEW YORK (Reuters) – Stock markets around the world bounced back on Thursday, with U.S. gains led by merger activity and earnings optimism that offset concerns over an escalating U.S. trade battle with China.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 11, 2018. REUTERS/Brendan McDermid
Metals also rebounded, with bargain-hunting investors scrambling to buy, while oil prices flailed around after clawing back big losses from the day before.
Stocks on Wall Street got a boost from technology and industrial shares. CA Inc jumped 18.1 percent after chipmaker Broadcom announced a surprise $18.9 billion deal to buy the U.S. business software company.
There was also some relief for markets as U.S. President Donald Trump came out of a meeting of the NATO military alliance in Belgium with a positive assessment after a string of earlier barbs.
“We had a fantastic meeting at the end,” Trump told reporters. “Very unified, very strong, no problem.”
The Dow Jones Industrial Average rose 196.76 points, or 0.8 percent, to 24,897.21, the S&P 500 gained 20.69 points, or 0.75 percent, to 2,794.71 and the Nasdaq Composite added 97.17 points, or 1.26 percent, to 7,813.78.
“While markets have typically reacted negatively to any escalation on trade, the overall impact has been relatively modest under the circumstances which suggests investors are far from panic mode right now,” Craig Erlam, Oanda senior market analyst, said in a note.
To view a graphic on the Trade war hit to equity markets, click: reut.rs/2L8nZtk
The pan-European FTSEurofirst 300 index rose 0.78 percent and MSCI’s gauge of stocks across the globe gained 0.52 percent.
Positive U.S. jobless data on Wednesday provided a market boost, with labor market conditions remaining robust in early July.
In addition, a consumer prices report indicated the underlying trend