World markets rise despite Brexit troubles in Britain
World markets were mostly higher on Tuesday, trading in a narrow range, as positive economic data from Britain and beyond soothed jitters over the resignation of two of its top ministers over Brexit.
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KEEPING SCORE: France's CAC 40 rose 0.3 percent to 5,412.82, while Germany's DAX shed less than 0.1 percent to 12,540.15 in early trading. Britain's FTSE 100 edged 0.1 percent higher to 7,695.04. Major U.S. indexes were set to open higher. Dow futures added 0.1 percent to 24,804.00. S&P 500 futures gained 0.1 percent to 2,789.20. The S&P 500 index has climbed at least 0.8 percent for the third straight day.
ASIA'S DAY: Japan's benchmark Nikkei 225 added 0.7 percent to 22,196.89 and South Korea's Kospi gained 0.4 percent to 2,294.16. The Shanghai Composite index finished 0.4 percent higher at 2,827.63. Hong Kong's Hang Seng dipped less than 0.1 percent to 28,682.25. Australia's S&P/ASX 200 dropped 0.4 percent to 6,258.10. Shares rose in Taiwan and were mostly higher in Southeast Asia.
BRITISH TENSIONS: The resignation of two British government ministers over Brexit negotiations is threatening to topple Prime Minister Theresa May's fragile minority government. Foreign Secretary Boris Johnson, one of the most prominent supporters of Brexit, quit with a letter accusing May of flying "white flags" of surrender in negotiations with the European Union. His exit followed the resignation Sunday of Brexit Secretary David Davis. As May grappled with the fallout from those defections, news that the British economy expanded at a 0.3 percent pace in May helped calm rattled investors.
U.S. OPTIMISM: Overnight gains on Wall Street boosted most Asian markets. U.S. stocks climbed on Monday as investors geared up for buoyant earnings reports in the coming weeks. This added to optimism after a strong jobs report on Friday. The Labor Department said that U.S. employers added 213,000 jobs in June, suggesting that hiring remains brisk although average hourly pay rose just 2.7 percent from a year earlier.
CHINA INFLATION: China's inflation rate for June, released on Tuesday, rose in line with market expectations. The National Bureau of Statistics announced that the consumer price index was 1.9 percent in June from a year earlier, up from 1.8 percent in May. There was little indication of the impact of rising U.S. tariffs on Chinese products.
ENERGY: Benchmark U.S. crude rose 49 cents to $74.34 a barrel. It gained 5 cents to settle at $73.85 per barrel in New York late Monday. Brent crude, used to price international oils, rallied $1.07 to $79.14 per barrel.
CURRENCIES: The dollar rose to 111.16 yen from 110.82 yen on Monday. The euro weakened to $ 1.1720 from $1.1749.
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