By IFCMarkets
Facebook surge leads technology shares rally
US stocks extended gains on Thursday on positive corporate reports. Dow Jones industrial average added 1% to 24322.34. The S&P 500 rose 1% to 2666.94 with nine of the 11 main sectors ending higher. The Nasdaq composite rallied 1.6% to 7238.06. The dollar strengthening persisted : 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, rose 0.4% to 91.546. Stock indices futures point to mixed openings today.
Facebook shares surged 9.1% after earnings beat forecasts, and technology shares followed suit lifted by better than expected results. So far this season, more than 80% S&P 500 companies have beaten forecasts, according to FactSet. The yield on 10-year Treasury notes declined from the psychologically important 3% level. Economic news were positive also: weekly initial jobless claims dropped to 209,000, the lowest level since December 1969. US durable goods orders climbed 2.6% in March, due to a 44.5% surge in commercial plane orders. And US trade deficit in goods narrowed 10.3% to $68 billion last month.
European indices rebound as euro falls
European stocks ended solidy higher on Thursday as euro fell after the ECB held policy unchanged. The British Pound’sextended losses against the dollar though currently is edging higher. The Stoxx Europe 600 index surged 0.9%. Germany’s DAX 30 rose 0.6% to 12500.47. France’s CAC 40 gained 0.7% and UK’s FTSE 100 ended 0.6% higher at 7421.43. Indices opened 0.1% – 0.6% higher today.
While it was widely expected that the ECB would hold the policy unchanged investors were anxious to see when the policy makers planned to end the stimulus program. But nothing new was in ECB president Draghi’s press conference or ECB’s statement other than restating the bond buying program will continue until end of September and beyond.
Asian markets recover
Asian stock indices are mostly higher today against the backdrop of falling geopolitical tensions with North and South Korea summit underway. Nikkei rose 0.7% to 22467.87 as yen resumed weakening against the dollar and the Bank of Japan on Friday dropped its target date for reaching 2% inflation. Chinese stocks are gaining: the Shanghai Composite Index is 0.2% higher and Hong Kong’s Hang Seng Index is up 0.7%. Australia’s All Ordinaries Index is up 0.7% as Australian dollar fall against the greenback continues.
Brent slides
Brent futures prices are edging lower today. They ended higher yesterday on the possibility that the US will re-impose sanctions on Iran: Brent for June settlement rose 1% to close at $74.74 a barrel on Thursday.
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