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Global stocks rose on Friday after JP Morgan’s results kicked off the U.S. corporate earnings season in style, while signs of stabilization in China’s economy also helped riskier assets amid talk that the growth outlook worldwide is better than thought.

Chinese data showed exports rebounded in March, lifting U.S. and euro zone bond yields to three-week highs and helping offset weaker imports and reports of another cut to German growth forecasts.

Investors are looking for signs of a Chinese economic recovery to temper global growth worries, especially after the International Monetary Fund this week downgraded its 2019 world economic outlook for the third time.

China’s trade results, as well as credit data, have helped boost risk appetite and reinforce the stabilization thesis, which should have spill-over effects for the global economy, said Candice Bangsund, a portfolio manager with the global asset allocation team at Fiera Capital in Montreal.

“The whole China situation really appears to be gaining some ground,” Bangsund said. “We saw a very impressive rebound in exports; this of course is helping alleviate fears of a hard landing.”

Canada’s main stock index rose on Friday, after a jump in oil prices lifted energy shares.

The Toronto Stock Exchange’s S&P/TSX Composite index was up 81.06 points, or 0.49 per cent, at 16,480.53.

All of the index’s 11 major sectors were higher, led by energy shares, which jumped 1 per cent.

Oil prices rose as involuntary supply cuts from Venezuela, Libya and Iran supported perceptions of a tightening market, already underpinned by an OPEC deal to cut production.

The financial sector gained 0.7 per cent, while industrial stocks rose 0.6 per cent.

MSCI’s gauge of equity market performance in 47 countries gained 0.37 per cent, while the EURO STOXX 50 index rose 0.31 per cent.

JPMorgan’s earnings easily beat analyst estimates, easing fears that slowing economic growth could weigh on its results. Its shares rose 4.6 per cent and led a broad rally in bank stocks, with the KBW banking index gaining 1.76 per cent.

Regional lenders in Europe, including StanChart, Deutsche Bank, BNP Paribas and Credit Suisse also rallied on JPM’s results, taking the European bank index up 1.9 per cent to a five-month high.

On Wall Street, the Dow Jones Industrial Average rose 269.22 points, or 1.03 per cent, to 26,412.27, the S&P 500 gained 19.12 points, or 0.66 per cent, to 2,907.44 and the Nasdaq Composite added 36.81 points, or 0.46 per cent, to 7,984.16.

Analyst now expect S&P 500 companies to show a 2.3-per-cent year-on-year decline in earnings, slightly improved from their most recent reading of a 2.5-per-cent drop, per Refinitiv data. But first-quarter profit is still seen logging its first annual contraction since 2016.

However, of the 29 companies in the S&P 500 that have reported thus far, 79.3 per cent have come in above analyst expectations.

In the largest energy deal since 2016, Chevron Corp. said it would buy Anadarko Petroleum Corp. for US$33-billion in cash and stock.

Chevron’s stock dipped by 4.9 per cent following the announcement, while Anadarko shot up 32 per cent.

Walt Disney Co. jumped 11.5 per cent after the media company priced its upcoming streaming service.

Streaming rival Netflix Inc. was down 4.5 per cent.

The euro gained despite the German growth concerns. Dealers were gearing up for demand from Japan as Mitsubishi UFJ Financial closed in on its multi-billion-euro acquisition of DZ Bank’s aviation-finance business.

The U.S. dollar index fell 0.24 per cent, with the euro up 0.42 per cent to $1.1297. The Japanese yen weakened 0.32 per cent versus the greenback at 112.05 per dollar.

Euro zone and U.S. government debt yields rose after the rebound in Chinese exports.

Yields on Germany’s 10-year government bond crossed into positive territory, to 0.058 per cent.

Benchmark 10-year U.S. Treasury notes fell 15/32 in price to push up their yield to 2.5579 per cent.

Oil provided the big milestones. Brent was at $71.40 a barrel, having broken back through the $70 threshold this week, and U.S. WTI was heading for a sixth straight week of gains for the first time since early 2016.

Involuntary supply cuts in Venezuela, Libya and Iran have supported perceptions of a tightening market, already constrained by production cuts from the Organization of the Petroleum Exporting Countries and its allies.

Brent crude oil futures settled up 72 cents at $71.55 a barrel, while West Texas Intermediate crude futures , the U.S. benchmark, rose 31 cents to settle at $63.89.

Commodities have had the best first-quarter start ever, Bank of America Merrill Lynch analysts said, calling the annualized returns they are tracking the strongest in the past 100 years.

Taking advantage of strong prices and subdued valuations for oil producers, Chevron said it will buy Anadarko Petroleum Corp for $33 billion in cash and stock.

Gold steadied en route to its first weekly gain in three weeks as the dollar weakened, although the metal’s advances were capped by stronger equities.

Gold crept higher after falling more than 1 per cent on Thursday to break below $1,300 following solid U.S. data. Spot gold traded at $1,292.41 per ounce.

Reuters

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