Global stocks rebound as investors await Britain’s vote

SEOUL, South Korea (AP) — Global stock prices rebounded Friday on reassuring U.S. inflation data as jittery investors looked ahead to Britain’s vote on European Union membership.

KEEPING SCORE: In early trading, Germany’s DAX rose 1.3 percent to 9,679.53 and France’s CAC 40 added 1.3 percent to 4,209.00. London’s FTSE 100 rose 1.2 percent to 6,024.51. On Thursday, the DAX lost 0.9 percent and the CAC 40 and FTSE 100 both shed 0.7 percent. On Wall Street, the Dow future was up just under 0.1 percent and that for the Standard & Poor’s 500 index was unchanged.

ASIA’S DAY: Tokyo’s Nikkei 225 rose 1.1 percent to 15,599.66 and the Shanghai Composite Index added 0.4 percent to 2,885.11. Hong Kong’s Hang Seng rose 0.7 percent to 20,169.98 and Sydney’s S&P-ASX 200 advanced 0.3 percent to 5,162.70. Seoul’s Kospi gained 0.1 percent to 1,953.40 and India’s Sensex rose 0.4 percent to 26,645.12. Benchmarks in Taiwan, Singapore and the Philippines also rose, while Indonesia and New Zealand declined.

U.S. INFLATION: Consumer prices rose moderately in May, giving investors some reassurance after the Federal Reserve expressed concern about low inflation, a possible indicator of weak growth. The increase was driven by energy costs and the biggest gain in shelter costs in more than nine years. The Commerce Department reported Thursday that consumer prices increased 0.2 percent last month following a 0.4 percent increase in April.

ANALYST’S TAKE: “The Brexit debate has been dominating the financial markets since last year,” Bernard Aw of IG said in a report. “For the rest of the world, it is not just the fate of the U.K. economy that concerns them, but the broader impact on the EU. Would we see more referendums on EU memberships from disillusioned members? Would a Brexit situation have greater implications for the EU than the U.K.? This uncertainty is what keeps investors awake at night, at least until the vote takes place.”

BRITAIN WATCH: The odds of a British vote in favor of pulling out of the 28-nation EU have risen ahead of the June 23 referendum. The Bank of England said Thursday a vote to leave would likely result in a sharp drop in the pound. It would also hurt spending and investment.

WALL STREET: U.S. stocks staged a late rally to close higher after a five-day losing streak. The DJ ended up 0.5 percent, the S&P gained 0.3 percent and the Nasdaq composite added 0.2 percent.

OIL: Benchmark U.S. crude added 47 cents to $46.68 per barrel in electronic trading on the New York Mercantile Exchange. The contract sank $1.80 to close at $46.21 a barrel on Thursday. Brent crude, used to price international oils, gained 60 cents to $47.77 in London.

CURRENCIES: The dollar fell to 104.26 yen from 104.49 yen while the euro gained slightly to $1.1250 from $1.1236.