View the article online at http://citywire.co.uk/money/article/a743995
Overnight Markets: US stocks gain on Yellen's statement
The S&P 500 Index registered its fifth quarterly gain after Fed Chair Janet Yellen relieved concerns about a rate increase coming earlier than expected and tensions appeared to ease in Ukraine.
Wall Street rose on Monday, with the Standard & Poor’s 500 Index posting a fifth quarterly gain, after Federal Reserve Chair Janet Yellen relieved concerns about a rate increase coming earlier than expected and tensions appeared to ease in Ukraine.
The Dow Jones industrial average surged 135 points, or 0.82%, to end at 16,458. The Standard & Poor's 500 Index rose 15 points, or 0.79%, to close at 1,872. The Nasdaq Composite Index climbed 43 points, or 1.04%, to finish at 4,199.
This was the fifth consecutive quarterly rise for both the S&P 500 and the Nasdaq, though it was the smallest three-month advance for both since the fourth quarter of 2012.
Yellen said yesterday ‘‘considerable slack’’ in the labour market is evidence that the central bank’s unprecedented accommodation will still be needed for “some time” to put Americans back to work.
Equities also received a boost from end-of-quarter "window dressing," when money managers adjust positions to improve the look of their portfolios.
Economic data showed, the Institute for Supply Management-Chicago Inc.’s business barometer fell to 55.9 from 59.8 in February. Economists surveyed by Bloomberg expected a drop to 59.5.
Meanwhile, Russia and the US agree on the need for a diplomatic solution to tensions over Ukraine, Russian Foreign Minister Sergei Lavrov said.
Materials and utility sector gained the most. Technology and financial shares also outperformed for the day. However, biotech stocks stayed in focus following recent volatility when investors sharply took profits in the high-flying sector.
Micron Tech (MU.O) climbed 8%, ranking as the S&P 500's top percentage gainer. Oracle Corp (ORCL.N) rose 3.4%. Vertex Pharmaceuticals (VRTX.O) climbed 4.3% and Biogen Idec (BIIB.O) added 4%.
US-listed shares of Prana Biotechnology Ltd (PRAN.O) plunged 71.6% after the company said its experimental drug to treat Alzheimer's disease failed to meet the main goal of a mid-stage study in patients with a mild form of the condition.
In Asia, shares oscillated between gains and losses as investors weighed reports on China’s manufacturing that underscored weakness in the world’s second-biggest economy.
The MSCI Asia Pacific Index was little changed at 138 as of 11:11 a.m. in Tokyo. Japan’s Topix index also fluctuated as investors weighed a weaker yen against a survey of sentiment among large manufacturers that missed estimates.Hong Kong’s Hang Seng Index added 0.8% percent. South Korea’s Kospi index rose 0.1%. Australia’s S&P/ASX 200 Index lost 0.3%. New Zealand’s NZX 50 Index dropped 0.4%. Singapore’s Straits Times Index added 0.4%, while Taiwan’s Taiex index gained 0.1%.
News sponsored by:
Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.
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.
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.
More about this:
Tools from Citywire Money
From the Forums
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 firstname.lastname@example.org to your safe senders list so we don't get junked.
by Gavin Lumsden on Sep 30, 2016 at 17:23