Citywire for Financial Professionals
Stay connected:

View the article online at http://citywire.co.uk/money/article/a650161

Overnight Markets: S&P 500 hits 5-year high on China export data

Equities gained after better-than-estimated data on Chinese exports spurred optimism about global growth prospects.

 
Overnight Markets: S&P 500 hits 5-year high on China export data

Wall Street rose on Thursday, with the Standard & Poor’s 500 Index hitting its highest level in five years, as better-than-estimated data on Chinese exports spurred optimism about global growth prospects.

The Dow Jones industrial average gained 81 points, or 0.6%, to 13,471. The Standard & Poor's 500 Index rose 11 points, or 0.76%, to 1,472. The Nasdaq Composite Index added 16 points, or 0.51%, to 3,122.

According to analysts, rally followed an upbeat economic data out of China, which showed the country’s overseas sales rose 14.1% in December from a year earlier, almost triple the 5% gain predicted.

Contributing to the positive sentiment, European Central Bank President Mario Draghi said the eurozone economy will slowly return to health in 2013 as the region’s bond markets stabilise after three years of turmoil.

Financial and energy stocks gained the most. Bank of America rose 3.1%, while Morgan Stanley was up 3.7%, one day after sources said the bank plans to cut jobs.

Shares of upscale jeweller Tiffany dropped 4.5% after it said sales were flat during the holidays.

Herbalife Ltd ended down 1.8% after the company stepped up its defense against activist investor Bill Ackman.

American Express rose 0.7% after the closing bell after the company said it would cut about 5,400 jobs, and take about $600 million in after-tax charges in the fourth quarter.

Ford (F) Motor Co. climbed 2.7% after boosting its dividend.

In deal news, Supervalu Inc. jumped 14% as a Cerberus Capital Management LP-led investor group agreed to buy five of its chains in a deal valued at about $3.3 billion.

In Asia, shares oscillated between gains and losses on Friday as China’s inflation increased more than forecast that may discourage further monetary policy easing to support an economic recovery. In Japan, stocks rose after the government approved 10.3 trillion yen ($116 billion) of stimulus measures.

The MSCI Asia Pacific Index dropped 0.1% to 132 as of 12:54 p.m. in Tokyo, erasing gains of 0.3%.Japan’s Nikkei 225 Stock Average advanced 1.2%.  China’s Shanghai Composite Index dropped 0.5%.

Hong Kong’s Hang Seng Index swung between gains and losses. Australia’s S&P/ASX 200 Index lost 0.2%. South Korea’s Kospi Index dropped 0.8% after the nation’s central bank left its key rate unchanged as expected.

1 comment so far. Why not have your say?

Geoff Downs

Jan 11, 2013 at 10:36

It reaches a 5 year high on QE.

report this

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:

New Economies - Frontiers and Latam Exciting markets, unrealised investment opportunities


From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.

Watch Now

The Citywire Guide to Investment Trusts


In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.

Watch Now

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...

Bingo! Rallying markets bring full house for investors

by Daniel Grote on Sep 23, 2016 at 17:01

Sorry, this link is not
quite ready yet