Citywire for Financial Professionals
Stay connected:

View the article online at

Overnight Markets: US stocks pare losses late on Europe optimism

Equities gained in the final hour of trading amid speculation European leaders were nearing a deal to halt contagion from the debt crisis.

Overnight Markets: US stocks pare losses late on Europe optimism

Wall Street declined on Thursday but pared losses in the final hour of trading amid speculation European leaders were nearing a deal to halt contagion from the debt crisis.

The Dow Jones industrial average dropped 25 points, or 0.2%, to 12,602. The Standard & Poor's 500 Index shed three points, or 0.21%, to 1,329. The Nasdaq Composite Index lost 26 points, or 0.9%, to 2,849.

Shares declined earlier in the session after a divided US Supreme Court supported the centerpiece of President Barack Obama's healthcare overhaul law. The law, which requires that most Americans obtain insurance by 2014 or face a penalty, is seen as a hallmark of a business unfriendly administration.

Equities later pared losses as EU leaders began the two-day summit. Finance officials were working on urgent measures to reduce financial market pressure on Spain and Italy, which may prove to be more difficult to rescue than smaller nations in the eurozone.

Major insurers such as Aetna Inc, which face more regulation, ended lower, while other companies reliant on Medicaid, such as Wellcare Health Plans, rose. Aetna ended down 2.7% and Wellcare jumped 8.8%.

Shares of JP Morgan Chase fell 2.5% after a New York Times report projecting that losses from a recent botched trade could reach $9 billion. US-traded shares of Barclays slumped 12.1% after Britain said it will investigate possible crimes over attempts to manipulate lending rates. Lloyds fell 3.6% in New York.

Bank of America Corp slipped 0.4% after Citi Investment Research posted a bearish note on several US banks including Bank of America Corp. Goldman Sachs edged up 0.2%.

After the close, Nike Inc plunged 10% after the footwear maker posted a quarterly profit that missed Wall Street estimates.

After the market close, European Union President Herman Van Rompuysaid leaders agreed to spend €120 billion to stimulate growth.

In Asia, equities surged on Friday after EU leaders meeting in Brussels agreed to ease repayment rules to Spanish banks and make it easier to recapitalise the region’s troubled lenders.

The MSCI Asia Pacific Index climbed 1.5% to 117 as of 1:06 p.m. in Tokyo. Hong Kong’s Hang Seng Index gained 1.9% and Japan’s Nikkei 225 added 1.1%. China’s Shanghai Composite Index and South Korea’s Kospi climbed 0.9%. Australia’s S&P/ASX 200 rose 1.1%.

In company news, Westpac Banking rose 2.2%, while Toyota Motor advanced 2.3%, leading gains among Japanese exporters.

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:

Understanding the value in commodity investing

Here at BlackRock, we help investors make more out of commodities with a range of innovative, flexible and resilient investment strategies.

Watch Now

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:


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 to your safe senders list so we don't get junked.


Daniel Godfrey: help me launch The People’s Trust!

by Gavin Lumsden on Oct 23, 2016 at 00:01

Sorry, this link is not
quite ready yet