European shares gained after data underscored the resilience of the American and Chinese economies, while the U.S. administration sent different signals on North Korea and its latest missile launch. The dollar was steady, while the yen declined with gold.
The Stoxx Europe 600 Index advanced after equity benchmarks rose in Tokyo and Sydney and U.S. stocks gained for a fourth day. The dollar was steady after Wednesday’s rally from the lowest in more than two years after second-quarter U.S. growth figures were revised up. Oil declined and gasoline advanced as Harvey continued to pound the energy-rich Gulf of Mexico coast, home to more than half of the U.S.’s refining capacity.
China’s official factory gauge further strengthened in August, data showed Thursday, defying economist forecasts for a decline. That came after a report Wednesday showed U.S. second-quarter growth reached the fastest pace in two years on stronger household spending and gains in business investment. A private report on payrolls indicated robust hiring this month, two days before government jobs data will be scoured for clues on the timing of the Federal Reserve’s next rate move.
President Donald Trump signaled he is running out of patience with Kim Jong Un’s regime after the latest provocation in which Pyongyang sent a missile over Japan earlier this week. Trump dismissed the idea of negotiating, while his defense chief said the U.S. hasn’t given up on diplomatic options. Meanwhile, Japanese Foreign Minister Taro Kano and U.S. Secretary of State Rex Tillerson agreed in a phone call to send a clear message to prevent North Korea from taking further actions and to prepare additional sanctions.
Storm Harvey returned to land and is poised to dump more rain over Texas and Louisiana. Refineries have been battered, with more than an estimated 4 million barrels a day — or about 23 percent of U.S. refinery capacity — getting hit.
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Among other key events this week:
Among economic releases in Europe on Thursday: Germany July retail sales and August unemployment, as well as euro-area July CPI and unemployment.
The U.S. releases on Thursday a key personal consumption expenditure report that the Federal Reserve looks at, ahead of jobs data out on Friday.
And here are the main moves in markets:
The Topix index rose 0.6 percent at the close in Tokyo, paring its first monthly drop since March. Australia’s S&P/ASX 500 Index added 0.8 percent. The Kospi retreated 0.4 percent.
Benchmark indexes dropped 0.6 percent in Hong Kong and fell in Shanghai, led by declines in banking stocks that had recently been surging.
The Stoxx Europe 600 Index climbed 0.3 percent as of 8:54 a.m. in London.
The U.K.’s FTSE 100 Index advanced 0.2 percent.
Futures on the S&P Index gained 0.2 percent.
The Bloomberg Dollar Spot Index gained 0.2 percent.
The euro increased less than 0.05 percent to 1.1888 per dollar.
The Japanese yen decreased 0.2 percent to 110.48 per dollar.
The yield on 10-year Treasuries rose two basis points to 2.15 percent.
German 10-year bund yields advanced one basis point to 0.37 percent.
West Texas Intermediate crude was little changed at $45.96 a barrel.
Gold declined 0.1 percent to $1,307.42 an ounce.
Gasoline for September advanced for an eighth day, up more than 6.5 percent to $2.0079 a gallon. Earlier the front-month contract touched the highest since July 2015.