Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a613317

Overnight Markets: S&P 500 erases loss on Fed minutes

Minutes from the Fed’s last meeting indicated the central bank might be ready for another round of stimulus.

 
Overnight Markets: S&P 500 erases loss on Fed minutes

The Standard & Poor’s 500 Index erased earlier losses to close flat on Wednesday as minutes from the Federal Reserve’s last meeting indicated the central bank might be ready for another round of stimulus.

The Dow Jones industrial average dropped 31 points, or 0.23%, to 13,173. The Standard & Poor's 500 Index closed flat at 1,413. The Nasdaq Composite Index gained six points, or 0.21%, to 3,074.

According to the minutes from the 31 July – 1 August meeting,  the Fed is likely to deliver another round of monetary stimulus "fairly soon" unless the economy improves considerably.

Markets spend spent most of the session in negative territory after dismal export figures from Japan and caution over Greece's meetings this week with European Union officials gave investors reasons to pull back after the recent rally.

In Japan, exports plunged the most in six months in July as shipments to Europe and China tumbled, adding to concerns about global demand.

In Europe, uncertainty lingered over the effectiveness of Greek Prime Minister Antonis Samaras' attempts to convince other European officials that his country should be given more time to meet targets for deficit cuts. German Chancellor Angela Merkel and French President Francois Hollande meet tomorrow to discuss the fiscal crisis, and both will discuss separately with Samaras later this week.

In the technology sector, Dell Inc was down 5.4% a day after the No. 2 U.S. PC maker warned of a difficult second half and slashed its full-year earnings outlook. Hewlett-Packard Co slipped 1.1% after the close as the world's largest PC maker posted a third-quarter loss. Apple Inc. rose 2%.

On the positive side, homebuilders surged with Toll Brothers Inc shares rising 3.8% after the largest U.S. luxury homebuilder reported a higher quarterly profit and a sharp jump in new orders. DR Horton Inc. added 4.1% and Lennar Corp. rose 3.8%. PulteGroup Inc. jumped 3.9% as a report showed sales of existing homes climbed in July from an eight-month low.

Sunrise Senior Living surged 59.7% after Health Care REIT Inc said it would acquire the company for $14.50 per share. Health Care shares slid 2.7%.

In Asia, equities gained on Thursday on hope central banks in the U.S. and China will ease monetary policy amid signs growth is slowing.

The MSCI Asia Pacific Index gained 0.8% to 122 as of 12:51 p.m. in Tokyo.  Hong Kong’s Hang Seng Index rose 0.9%. Australia’s S&P/ASX 200 Index and South Korea’s Kospi Index both added 0.2%. Japan’s Nikkei 225 Stock Average swung between gains and losses as the yen strengthened against the U.S. dollar and the euro. The Shanghai Composite Index lost 0.2%, reversing earlier gains, after a report showed China’s manufacturing may contract at a faster pace in August.

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

The Citywire guide to investment trusts

In association with Aberdeen Asset Management

Fund managers from Standard Life Investments quizzed on investment trusts


What can SLI bring to the table for those who want to put their money into investment trusts?

More about this:

Archive

Today's articles

Tools from Citywire Money

From the Forums

+ Start a new discussion

Weekly email from The Lolly

Get simple, easy ways to make more from your money. Just enter your email address below

An error occured while subscribing your email. Please try again later.

Thank you for registering for your weekly newsletter from The Lolly.

Keep an eye out for us in your inbox, and please add noreply@emails.citywire.co.uk to your safe senders list so we don't get junked.

Read more...

Where do retail bonds fit in my portfolio?

by Jennifer Hill on Jul 30, 2014 at 07:00

Sorry, this link is not
quite ready yet