Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

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

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Potential US rate rise, cheap oil & the Europe opportunity

Potential US rate rise, cheap oil & the Europe opportunity

This week we analyse the implications of a possible rise in US interest rates, the impact of cheap oil and the European equity opportunity.  

Play Carmignac's Crowl: what QE could mean for Europe

Carmignac's Crowl: what QE could mean for Europe

The ECB is widely expected to finally fire its QE gun this week. Carmignac's Sandra Crowl discusses the implications for the eurozone.

Play Grexit worries, currency wars and a grizzly outlook for 2015?

Grexit worries, currency wars and a grizzly outlook for 2015?

The first Investment Pulse of the year looks at the potential impact of Greece leaving the euro, volatility in currency markets and the UK’s economic prospects.

Your Business: Cover Star Club

Profile: DIY investing is biggest threat to industry, says Whitechurch

Profile: DIY investing is biggest threat to industry, says Whitechurch

The industry is at risk of pushing potential investors down the DIY route unless it does more to make its services accessible says the Whitechurch Securities boss

Wealth Manager on Twitter