Asian markets advanced on Friday, following Wall Street’s gains on Thursday. The Nikkei rose .5% to 9647, the Kospi climbed .6%, and the ASX 200 gained .5%. China’s Shanghai Composite rallied 1.3% to 2440, while the Hang Seng inched up .1% to 21507.
In Europe, shares closed mostly higher, encouraged by strong earnings results from Telecom Italia, which rose 7.3%. The DAX advanced .8%, the CAC40 gained .6%, and the FTSE closed flat. Deutsche Bank jumped 4.6% after Merill Lynch upgraded the stock to “buy”.
US markets posted smaller gains, and the S&P 500 closed at its highest level in 3.5 years. The S&P 500 rose .2% to 1365.50, the Nasdaq edged up .2% to 2964, and the Dow closed flat at 12983.
S&P 500 Closes At Highest Level In 3 1/2 Years
Gap shares sank 4% after reporting a sharp drop in 4th quarter income. Salesforce.com rallied 9% on solid earnings data, and garnered several analyst upgrades.
Currencies
The yen fell 1.5% to 81.20, as the recent downtrend intensified. The dollar traded lower against its European counterparts, as the pound advanced .8% to 1.5872, while the euro and Swiss franc climbed .6%. The Australian dollar and Canadian dollar both eased .3%.
Economic Outlook
Consumer sentiment rose to 75.3 a significant jump from last month’s 72.5 reading, hitting its highest level since February 2011. New home sales clocked in at 321K, 5K more than expected, but slightly lower than last month’s gain of 324K.
Stocks Trade Mixed
EquitiesAsian markets traded mostly lower on Monday, as the recent spike in oil prices took its toll on stocks. The Nikkei declined .1% to 9633, although exporters gained as the yen continued to slide against the dollar. The Kospi slumped 1.4%, the ASX 200 dropped .9%, and the Hang Seng shed .9% to 2128. The Shanghai Composite bucked the downtrend, rising .3% to 2447, a 3 month high.
European markets closed lower as well. The CAC40 sank .7%, the FTSE fell .3%, and the DAX eased .2%. German Chancellor, Angela Merkel, said there was no guarantee Greece’s bailout package would succeed, dampening spirits. Banks fell 1.4%, with Societe Generale dropping 3%.
US stocks overcame early losses to close modestly higher. The Dow rose points to 12996, erasing a 100-point loss from earlier in the day The S&P 500 advanced .2% to 1369, and the Nasdaq inched up .1% to 2967.
Currencies
The Dollar rose against most European currencies amid uncertainty for the region. The Euro and Swiss Franc slid .4% to 1.3397 1.1119, and the Pound declined .3% to 1.5820. The Australian Dollar gained .5% to 1.0758, and the Yen bounced .6% to 80.54. The Canadian Dollar rose fractionally to .9991.
Economic Outlook
Pending home sales blew past forecasts, climbing 2% to its highest level since April 2010.
Global Stocks Rise
Equities
Asian markets rallied on Tuesday, despite a bankruptcy filing by Elpida memory, in Japan. The Nikkei gained .9% to 9722, recovering from early losses, after chip-related stocks initially sold off, but later recovered. The Kospi rose .6%, as Hynix memory jumped 6.8%, and the Hang Seng surged 1.7% to 21569. The Shanghai Composite edged up .2%, and the ASX 200 posted a narrow loss.
Upbeat US consumer confidence data helped boost European markets in the afternoon. The DAX climbed .6%, the CAC40 gained .4%, and the FTSE rose .2%. The ECB will be injecting additional liquidity on Wednesday to help regional banks, which are expected to borrow 500 billion euros.
In the US, the Dow managed to close above 13000 for the first time in nearly 4 years, settling at 13005, up 24 points. The S&P 500 rose .4%, and the Nasdaq climbed .7%.
Currencies
European currencies closed higher on Tuesday, as the pound, euro, and Swiss franc all rose .5%. The Australian dollar inched up .1% to 1.0771, and the Canadian dollar gained .4% to .9952. The yen settled flat at 80.48, after swinging up and down by .5% during the day.
Economic Outlook
Consumer confidence blew past forecasts, jumping to 70.8 from last month’s 61.5 reading, a 1-year high. The Richmond manufacturing index surged to 20 from 12, whereas analysts had expected a slide to 11.
Stocks Ease as Bernanke Fails to Offer New Stimulus
EquitiesAsian markets closed mostly higher on Wednesday in anticipation of the ECB’s latest injection of liquidity. The Kospi rallied 1.3% to 2030, a fresh 6-month high, and the ASX 200 gained .8%. In China, markets were mixed, as the Shanghai Composite slumped 1%, ending an 8-day winning streak, while the Hang Seng closed up .5%. Japan’s Nikkei closed flat at 9723, surrendering a substantial 140-point advance from earlier in the day.
In Europe, markets traded lower in the afternoon, taking the lead from Wall Street. The FTSE sank 1% to 5872, the DAX skidded .5%, and the CAC40 eased fractionally. Banking shares bucked the downtrend, rising .5%.
US stocks fell, as remarks by Fed chairman, Ben Bernanke, made investors nervous. Bernanke said the job market is “far from normal” and may require additional stimulus, but failed to offer any plans of additional easing at this point. The Dow lost 54 points to 12952, the Nasdaq shed .7%, and the S&P 50 declined .5% to 1366.
Dow Falls Below 13000, Down 54 Points
Apple shares gained 1.3% to 542.44, pushing the company's market cap past the half-trillion mark to $506 billion, in anticipation of the company’s iPad 3 launch.
Currencies
The dollar rallied nearly across the board. The euro slumped 1.1% to 1.3321, the Swiss franc dropped 1% to 1.1055, and the yen shed 1% to 81.29. The Australian dollar and Canadian dollar both fell .5%.
The Bank of England’s governor, Marvin King, said he sees no need for further quantitative easing. The upbeat outlook helped the pound overcome the broader sell off, inching up fractionally to 1.5907.
Economic Outlook
GDP data for the 4th quarter showed the economy grew at 3%, better than the 2.8% forecast by analysts. Chicago PMI rose to 64 from 60.2, significantly better than the 61.6 expected.
Global Stocks End Mixed
EquitiesAsian markets traded higher on Friday, amid signs the US economy is improving. The Nikkei climbed .7% to 9777, the Kospi rose .2%, and the ASX 200 gained .4%. The Shanghai Composite surged 1.4% after a government official said banks will increase lending to land developers, and the Hang Seng advanced .8% to 21562.
European markets closed mostly lower despite gains in financials on the heels of the latest liquidity injection by the ECB. The FTSE and CAC40 declined .3%, while the DAX edged up fractionally.
US stocks ended down, with the S&P 500 declining .3%, the Nasdaq down .4%, and the Dow down 3 points. Small-cap stocks were particularly under pressure, as the Russell 2000 sank 1.6% to its lowest level since the end of January.
Currencies
The dollar posted significant gains against global currencies on Friday. The euro and Swiss franc both dropped .9% in a day-long slide. The yen and pound both sank .8%, and the Australian dollar declined .7% to 1.0732. The Canadian dollar fared better than its peers, easing .4% to .9891.
Economic Outlook
Monday’s reports will include factory orders and the ISM’s non-manufacturing index.