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Overnight Markets: US stocks jump to record highs on deal to end shutdown

Overnight Markets: US stocks jump to record highs on deal to end shutdown

Wall Street closed at record highs on Monday in the wake of a deal by US senators to end the federal government shutdown.

The Dow Jones Industrial Average added 143 points, or 0.55%, to 26,215, the S&P 500 rose 23 points, or 0.81%, to 2,833 and the Nasdaq Composite gained 72 points, or 0.98%, to 7,408.

Legislation to renew federal funding to the government cleared a procedural hurdle in the Senate and was expected soon to pass votes in the Senate and House of Representatives, allowing government to re-open through 8 February.

Telecoms and energy sectors surged more than 2%, which was offset by a 0.3% decline in materials and a more modest 0.1% decline in industrials.

Halliburton Co (HAL.N) climbed 6.40% after posting a much bigger-than-expected quarterly profit in the fourth quarter. General Electric (GE.N) was down 0.55% BofA-Merrill Lynch downgraded its stock.

Shares of Netflix Inc (NFLX.O) closed up 3.23% ahead of its quarterly results and added to gains in extended trading after its quarterly numbers were released.

The Nasdaq biotech index rose 3.15% to notch its best day since 21 June after a flurry of merger activity in the sector with French drugmaker Sanofi (SASY.PA) and US-based Celgene (CELG.O) splurging a combined total of more than $20 billion.

Shares in US haemophilia specialist Bioverativ (BIVV.O) soared 61.89% after Sanofi agreed to buy the company for $11.6 billion. Juno Therapeutics (JUNO.O) jumped 26.83% after Celgene agreed to buy the biotech for about $9 billion in cash.

In other M&A news, AIG (AIG.N) said it would buy reinsurer Validus Holdings (VR.N) for $5.56 billion, sending the target’s shares up 44.03%.

In Asia,, shares advanced on Tuesday in morning session after US senators struck a deal to end a three-day government shutdown.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2% to a fresh record peak. Australian stocks climbed 0.7% and South Korea's KOSPI added 0.8%. Japan's Nikkei was 0.75% higher.

In Greater China, the Hang Seng Index added 0.94%, while on the Mainland, the Shanghai Composite Index was up 0.67%.

 

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