Volkswacht Bodensee - Global markets rise as Trump weighs future of Fed boss

US indices were near record highs two hours into the Wall Street session with all eyes on an incoming earnings reports, notably for streaming giant Netflix.

More than two hours in, the Dow Jones Industrial Average and the broad-based S&P 500 boasted gains of close on 0.5 percent while the tech-rich Nasdaq Composite Index advanced 0.8 percent.

The rises came on the back of a better-than-expected US retail sales report and a round of mostly solid corporate earnings.

European markets were strongly in the green. Frankfurt and Paris closed almost 1.5 percent ahead although London could only manage a 0.5 percent rise amid a higher official UK jobless count and slowing wages growth.

Market observers have been carefully watching reports that US President Donald Trump, fresh from unveiling new tariff threats, could sack Powell.

Overall, US retail sales were up 0.6 percent in June to $720.1 billion, reversing a May 0.9 percent decline. The figures topped analyst expectations.

Besides retail sales, another week of modest weekly US jobless claims provided reassurance on the economy, said Art Hogan of B. Riley Wealth Management.

"We've been worried about earnings and trade wars, but the economic data (...) remains resilient," Hogan said.

"If earnings are more upbeat than expected and if management continues to tell a reassuring story about consumer spending, stocks could react favorably," said Bret Kenwell, eToro US investment analyst, who called the retail sales data "reassuring."

All three main New York indices ended in the green Wednesday, with the Nasdaq at another record high, following a brief sell-off after it emerged Trump had raised the idea of firing Powell.

Markets recovered after Trump denied he was planning such a move.

The news caused a spike in US Treasury yields amid fears over the central bank's independence. Trump has spent months lambasting Powell for not cutting interest rates.

Fawad Razaqzada of FOREX.com suggested markets were in search of a fresh spark.

"But here’s the question on every trader’s mind: will we see further highs, or is this rally due a pause amid creeping inflation concerns and the looming August tariff threat?"

In Asia, Toko and Shanghai added around half of one percent though Hong Kong edged down.

Tokyo-listed shares in the Japanese owner of convenience store giant 7-Eleven plunged after a Canadian rival, Alimentation Couche-Tard, pulled out of a $47 billion takeover bid.

- Key figures at around 1550 GMT -

Global New York - Dow: UP 0.4 percent at 44,422.84 points

New York - S&P 500: UP 0.5 percent at 6,292.52

New York - Nasdaq Composite: UP 0.8 percent at 20,887.48

London - FTSE 100: UP 0.5 percent at 8,972.64 points (close)

Paris - CAC 40: UP 1.3 percent at 7,822.00 (close)

Frankfurt - DAX: UP 1.5 percent at 24,370.93 (close)

Tokyo - Nikkei 225: UP 0.6 percent at 39,901.19 (close)

Hong Kong - Hang Seng Index: DOWN 0.1 percent at 24,498.95 (close)

Shanghai - Composite: UP 0.4 percent at 3,516.83 (close)

Euro/dollar: DOWN at $1.1598 from $1.1641 on Wednesday

Pound/dollar: DOWN at $1.3416 from $1.3414

Dollar/yen: UP at 148.50 yen from 147.80 yen

Euro/pound: DOWN at 86.45 pence from 86.72 pence

Brent North Sea Crude: UP 0.8 percent at $69.02 per barrel

West Texas Intermediate: UP 1.1 percent at $65.82 per barrel

T.Egger--VB