Wealth Manager - Essential news for investment professionals

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 Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Play Tesco, Japan and the rise of the central banker

Tesco, Japan and the rise of the central banker

 Libby Ashby and leading wealth managers scrutinise the food retail sector, Japan’s consumption tax hike and political risk in the markets.

Your Business: Cover Star Club

Veteran banker boosts Sanlam’s stockbroking team

Veteran banker boosts Sanlam’s stockbroking team

A veteran private banker has been recruited by Sanlam Private Investments to strengthen its advisory stockbroking team.

Wealth Manager on Twitter