By IFCMarkets
US stock indices rebounded on Thursday led by technology recovery. Dow Jones industrial average gained 1.2% to 24143. The S&P 500 added 1.4% to 2642 with ten of the 11 main sectors finishing higher. The Nasdaq composite rose 1.6% to 7063. The dollar strengthened slightly: the live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, inched up to 90.05. US financial markets will be closed today for Good Friday.
Recovery in technology majors Facebook, Amazon and Apple led the market rebound. Purchases of stocks by portfolio managers to improve performance reports of funds in the final trading day of quarter, known as “window dressing,” also supported the market sentiment. In economic news the 0.2% rise in PCE index in February, the Federal Reserve’s preferred inflation gauge, was in line with expectations. Meanwhile the Chicago purchasing manufacturers’ index for March fell sharply to 57.4, a one-year low, from 61.9 in February.
European stocks extended gains on Thursday led by rally in auto maker shares. Both the euro and British Poundextended losses against the dollar. The Stoxx Europe 600 index rose 0.4%. Germany’s DAX 30 outperformed jumping 1.3% to 12096.73. France’s CAC 40 gained 0.7% and UK’s FTSE 100 added 0.2% to 7056.61. Markets will be closed in Europe for Good Friday.
Automaker shares rallied after news France’s Renault is in talks to merge with Japan’s Nissan Motor. Renault jumped 5.8%, Volkswagen and BMW gained 3.6% and 2.6% respectively. In economic news Germany’s inflation rose to below expected 1.6% in March. And the UK’s gross domestic product in the fourth quarter of 2017 was unchanged by the Office for National Statistics at 0.4% over quarter.
Asian stocks are higher today tracking Wall Street gains overnight. Nikkei rose 1.4% to 21454.30 as Japan’s industrial output jumped in February despite yen strengthening against the dollar. Chinese stocks are higher: the Shanghai Composite Index is 0.3% higher. Markets in Hong Kong and Australia are closed for Good Friday.
Brent futures prices advanced yesterday on lingering concerns US may re-impose economic sanctions on major oil exporter Iran curbing its crude oil exports while OPEC considers extending output cuts. Prices rose yesterday: Brent for May settlement gained 1.1% to close at $70.27 a barrel on Thursday.
Market Analysis provided by IFCMarkets