Volkswacht Bodensee - Wall Street stocks rise despite growth slowdown

Asian and European stock markets mostly edged higher.

The dollar traded mixed after the data showed US gross domestic product rose at an annual rate of 1.1 percent in the January to March period, down from 2.6 percent in the fourth quarter last year.

While the headline growth figure was lower than expected, consumer spending held up well.

"The lagged effects of the 2022-23 US rate hiking cycle may finally be slowing growth," said Ryan Brandham, Head of Global Capital Markets, North America at Validus Risk Management.

"A mixed bag of data today points to slower growth and stickier inflation, and the Fed is in a tough spot trying to navigate these two forces," he added.

Uncertainty over the Fed's next move with regards to hikes and borrowing costs that are aimed at cooling inflation comes as lacklustre US consumer confidence data deepens fears of a broader recession.

Yields on US government debt rose after the data was released, suggesting that the market sees the Fed will consider the strong consumer spending in the first quarter as evidence the economy can take more interest rate hikes.

Shares in Facebook-owner Meta jumped 13 percent after beating earnings expectations, helping lift the tech-heavy Nasdaq Composite stock index 1.0 percent.

The earnings season is in full swing and as usual paints a mixed picture.

Briefing.com analyst Patrick O'Hare said Wall Street has not gotten much of a boost despite a majority of companies beating expectations, which he said can be explained by the fact that overall earnings growth is still down.

"For a market trading at a premium valuation in front of the reporting period, it is tough to justify multiple expansion when there is no earnings growth and when many economic indicators are stacking up to suggest earnings estimates for future quarters are likely to be revised lower while Fed officials are lining up suggesting rates still need to go higher to tame inflation," he said.

Japan's Nomura bank saw its share price plunge more than seven percent after announcing its profits tumbled 76 percent to $55.3 million in the last quarter.

South Korean tech giant Samsung meanwhile reported its worst quarterly profits in 14 years, blaming slowing consumer spending and falling microchip prices.

Although the company's first-quarter net income slumped 86 percent its stock closed higher.

In Hong Kong, excitement over a stock-market launch by Chinese baijiu liquor maker ZJLD fizzled as its shares closed down almost nearly 17 percent.

Global sentiment was dampened by fears for the health of the banking sector, with investors keeping an eye on the embattled First Republic Bank, which ended down nearly 30 percent on Wednesday after another bruising session.

But British bank Barclays rallied, topping London's benchmark FTSE 100 stocks index, thanks to a jump in quarterly profits.

Across the Atlantic, "we cannot rule out the possibility developments around First Republic could unfold in a manner that would lead the" Federal Reserve to pause on interest-rate rises, noted Krishna Guha, head of central bank strategy at Evercore ISI.

First Republic Bank shares were up 2.6 percent shortly after trading began on Thursday.

- Key figures around 1330 GMT -

New York - Dow: UP 0.2 percent at 33,376.92 points

London - FTSE 100: DOWN less than 0.1 percent at 7,845.72

Frankfurt - DAX 40: UP 0.3 percent at 15,838.61

Paris - CAC 40: UP 0.5 percent at 7,504.55

EURO STOXX 50: UP 0.5 percent at 4,367.34

Hong Kong - Hang Seng Index: UP 0.4 at 19,840.28 (close)

Shanghai - Composite: UP 0.7 percent at 3,285.88 (close)

Tokyo - Nikkei 225: UP 0.2 percent at 28,457.68 (close)

Euro/dollar: DOWN at $1.0999 from $1.1044 on Wednesday

Pound/dollar: UP at $1.2444 from $1.2409

Dollar/yen: UP at 134.10 yen from 133.67 yen

Euro/pound: DOWN at 88.40 pence from 88.55 pence

Brent North Sea crude: UP 0.5 percent at $78.04 per barrel

West Texas Intermediate: UP 0.4 percent at $74.60 per barrel

burs-rl/giv

M.Furrer--BTB