Asian markets traded mixed, shrugging off Tuesday’s steep drop in US shares. The Nikkei settled down .2%, the Kospi gained .3%, and Australia’s ASX 200 rose .4%. Modest inflation figures from Australia helped the index reverse from early losses, on hopes of an interest rate cut. The Shanghai Composite rallied .7%, and the Hang Seng rose .5%.
A similar performance was seen in Europe ahead of the European Summit. The FTSE rose .5%, while the DAX fell .5% and the CAC40 slipped .2%. Germany’s parliament approved an expansion of the EFSF bailout fund. Banks swung in a wide range, closing down nearly 1% after rising more than 1% earlier in the day.
US markets rallied with the Dow gaining 162 points to 11869. The S&P 500 climbed 1.1%, and the Nasdaq advanced .5%, as progress from Europe helped lift sentiment.
Boeing gained 4.5% after beating earnings forecasts. Meanwhile, Ford shares slumped 4.5% even though it beat analyst forecasts. Sprint dropped 7% after reporting a loss in subscribers that was more than expected. Amazon shares closed down 12.7% on a weak outlook which prompted several brokerages to cut their price targets on the stock.
Currencies
The Canadian Dollar rallied 1.2% to 1.0045, reversing Tuesday’s losses. The Euro ended flat at 1.3908, while the Pound and Australian Dollar both slipped 2%. The Yen touched another record high against the dollar, before settling down .2% to at 76.23.
Economic Outlook
Investors are anxiously waiting for a deal regarding Greece’s debt. The market is looking for a 50% haircut on the debt.
Wednesday’s reports were upbeat, as new home sales rose, and durable goods orders jumped.
Thursday’s reports will include GDP, pending home sales, and weekly jobless claims.
Earnings are due for from Bristol-Myers, Aetna, P&G, Time Warner, AMD, Motorola, Baidu, and Electronic Arts.