European stocks posted a weekly gain, rising to a 23-month high, as German investor confidence climbed to the highest in 2 1/2 years and U.S. lawmakers voted to temporarily suspend the government’s borrowing limit.
In Germany, investor confidence increased to a 2 1/2-year high in January. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations climbed to 31.5 from 6.9 in December.
A measure of euro-area services and manufacturing output contracted at a slower pace this month than economists had estimated. A composite index based on a survey of purchasing managers in both industries rose to 48.2 from 47.2 in December, Markit Economics said. A reading below 50 indicates that activity shrank.
The European Central Bank said financial firms will repay more of its emergency three-year loans than forecast in another sign the region’s debt crisis is abating. Some 278 financial institutions will return 137.2 billion euros ($185 billion) on Jan. 30, the first opportunity for early repayment of the initial three-year loan, compared with the median projection of 84 billion euros in a survey of economists.
National benchmark indexes rose in 16 of the 18 western European markets this week. France’s CAC 40 added 1 percent and Germany’s DAX Index gained 2 percent. The U.K.’s FTSE 100 Index advanced 2.1 percent even as Britain’s economy shrank a more- than-forecast 0.3 percent in the fourth quarter.
Unilever advanced 4.3 percent in London trading to the highest level since at least 1988. The consumer-goods company reported revenue growth that beat estimates for a third straight quarter, led by gains in North and South America and demand for personal-care products.
EasyJet surged 8.4 percent, its biggest increase in nine weeks. The discount airline rose to its highest price since its initial public offering in November 2000 after saying quarterly sales increased 9.2 percent.
Rightmove Plc rallied 7.2 percent, its biggest weekly advance in 17 months, as analysts at Barclays Plc and UBS AG recommended the shares. The owner of the U.K.’s largest residential property website said the number of sellers coming to market this month is 22 percent higher than a year ago.
Monte Paschi, the world’s oldest bank, sank 12 percent for the biggest drop since July. Italy’s central bank said Jan. 23 that the lender hid documents from regulators on deals that may prompt the bank to restate profit.
Nokia Oyj slid 7 percent after the phone maker reported a seventh straight drop in quarterly revenue and said it will omit a dividend for the first time in at least 143 years.
U.S. equity futures rose as Starbucks Corp. and Procter & Gamble Co. reported increased profit and German business confidence topped forecasts.
European stocks rose, reaching at the same 23-month high as a report showed that German business confidence rose more than expected. Also today, the European Central Bank reported loan repayment program for long-term refinancing. Research conducted by the Institute of Ifo, showed that the business climate index rose to a seven-month high in January, while still achieving the level of 104.2, compared to 102.4 in December. Note that according to the average forecast of economists value of this indicator was increased to 103. The data also showed that this was the third consecutive monthly increase.
Cost STMicroelectronics (STM) NV rose 4.4 percent after Exane BNP Paribas raised its rating on the stock of the company to 'buy'. Shares of SolarWorld AG (SWV) fell from a peak in July 2002, after the company reported that it is necessary to make a "significant" change in the structure of the debt.
Stoxx Europe 600 Index rose 0.3 percent to 289.60, heading for a weekly increase of 0.9%.
Shares of Boiron SA (BOI) increased by 5.5% to 30.31 euros after the French manufacturer of homeopathic remedies said projected operating income in 2012 will be "significantly" higher than in 2011. Full year revenue rose by 7.5 percent to 566.3 million euros.
The cost of Salzgitter AG fell 2.4% to 35.94 euros after analysts at Commerzbank AG and UBS AG downgraded the stock to 'sell'.
FTSE 100 6,271.69 +6.78 +0.11%
CAC 40 3,776.9 +24.73 +0.66%
DAX 7,837.6 +89.47 +1.15%
Asian stocks rose as declines in Japanese consumer prices added to the case for more monetary stimulus, boosting the Topix Index to cap its longest weekly winning streak in 40 years. Shares also gained after U.S. jobless claims fell to a five-year low.
Nikkei 225 10,926.65 +305.78 +2.88%
Hang Seng 23,580.43 -18.47 -0.08%
S&P/ASX 200 4,835.17 +24.95 +0.52%
Shanghai Composite 2,291.3 -11.29 -0.49%
Sony Corp. rose 8.5 percent in Tokyo on a report it may sell its lithium battery business.
Karoon Gas Australia Ltd. (KAR) gained 14 percent after the explorer said it discovered oil in Brazil.
Great Eagle Holdings Ltd. added 14 percent after the real estate company proposed a spin-off of its Hong Kong hotels.
Samsung Electronics Co. dropped 2.5 percent to its lowest close since Nov. 30 after warning the South Korean currency’s strength will hurt future earnings.Asian stocks swung between gains and losses as Japanese shares rallied on a weaker yen, China’s manufacturing beat estimates and North Korea threatened a nuclear test. Apple Inc. suppliers fell after the company reported its weakest sales since 2009.
Nikkei 225 10,620.87 +133.88 +1.28%
Hang Seng 23,598.9 -36.20 -0.15%
S&P/ASX 200 4,810.22 +22.40 +0.47%
Shanghai Composite 2,302.6 -18.31 -0.79%
Toyota Motor Corp., the world’s biggest automaker, rose 2.2 percent in Tokyo.
AAC Technologies Holdings Inc., which makes speakers for Apple, dropped 6 percent in Hong Kong.
Tata Motors Ltd. retreated 7.8 percent in Mumbai after the Indian automaker’s Jaguar Land Rover Plc unit said profit growth probably stalled in the fiscal third quarter.
European stocks climbed to their highest level since February 2011 as jobless claims in the U.S. fell to a five-year low and the House of Representatives voted to temporarily suspend the federal government’s borrowing limit.
A Labor Department report today showed claims for jobless benefits in the U.S. unexpectedly dropped last week. Applications for unemployment insurance payments decreased by 5,000 to 330,000 in the week ended Jan. 19, the fewest since the same week in 2008. Economists had forecast 355,000 claims, according to the median estimate in a survey.
The U.S. House of Representatives approved legislation to suspend the borrowing limit late yesterday. The measure, which passed 285-144, lifts the government’s $16.4 trillion borrowing limit until May 19.
In China, manufacturing expanded at the fastest rate in two years, according to a survey of companies by Markit and HSBC Holdings Plc. The preliminary reading of their purchasing managers’ index rose to 51.9 in January, from 51.5 in December. That compares with the median estimate of 51.7 in a survey. HSBC and Markit will report their final reading for January on Feb. 1.
National benchmark indexes advanced in 14 of the 18 western-European markets. The U.K.’s FTSE 100 gained 1.1 percent, while France’s CAC 40 added 0.7 percent. Germany’s DAX rose 0.5 percent.
EasyJet rallied 5.1 percent to 898.5 pence, the highest price since its initial public offering in November 2000. Revenue jumped 9.2 percent to 833 million pounds ($1.3 billion) in the three months ended Dec. 31, compared with 763 million pounds a year earlier, the Luton, England-based company said. The airline forecast that it will post a pretax loss of 50 million pounds to 75 million pounds in the first half of 2013.
Ryanair Holdings Plc, Europe’s biggest discount airline, rose 2.7 percent to 5.40 euros in Dublin, its highest price in more than five years.
Vodafone jumped 3.2 percent to 168.7 pence, its biggest gain in five months. Greenlight Capital Re Ltd. wrote in a note that the mobile-phone operator’s valuation implies that its 45 percent stake in Verizon Wireless has no value. The note described the holding as “clearly quite valuable.” Verizon’s market value climbed above Vodafone’s in December for the first time in a decade.
Logitech International SA plunged 9.6 percent to 6.51 Swiss francs. The world’s biggest maker of computer mice put its remote-control and video-security businesses up for sale after posting the loss. The average estimate of seven analysts had called for net income of $50.3 million, according to a survey. Logitech reported third-quarter profit of $55 million in its previous fiscal year.
U.S. stocks showed mixed trend amid macroeconomic statistics and published reports of major corporations.
The number of initial claims for unemployment benefits in the U.S. fell to 330,000 last week, the lowest level since January 2008. In January, a preliminary manufacturing PMI rose to 56.1 vs. 53.0 and 54.0 in December.
According to trade in high-tech NASDAQ index fell by 23.29 points (-0.74%) to 3130.38 points due to collapse of the shares of iPhone smartphone maker Apple (AAPL, -12,4%) after failed statements. Apple profits up to the third quarter of fiscal year showed the first decline for many years, but has been better than expected ($ 13.81 per share, versus the average forecast of $ 13.55). Worse than expected data released by revenue ($ 54.51 billion (+18% y / y), the forecast $ 54.86 billion). Poor results are due to the increasing competition in the segment of smartphones and tablets. In this regard, the company also lowered its forecast for revenue in the current quarter.
Broad market index S & P 500 showed growth seventh straight session, the longest series of increases since 26 October 2006. S & P 500 rose 0.01 points to 1,494.82 points, its highest close since December 26, 2007.
The index of "blue chips» DJIA showed growth the fifth day in a row, for the tenth time in 11 sessions, and at the end of trading rose to the highest level since Oct. 31, 2007. DJIA trading results rose 46.00 points (0.33%) to 13,825.33 points.
Most of the components of the index rose DOW (21 of 30). Leader shares were Cisco Systems (CSCO, +1.94%). In the longest minus trading results were shares of Alcoa (AA, -1.20%).
All sectors of the index S & P, except for technological equipment (-1.0%) are in the black. Looks better than the other service sector (+0.7%).
Online video rental operator Netflix soared 42.2%, reported for the last quarter of better than expected - net income was $ 7.9 million, while Wall Street expected losses in the amount of 13 cents per share.
At the close:
S & P 500 1,494.82 +0.01 0.00%
NASDAQ 3,130.38 -23.29 -0.74%
Dow 13,825.33 +46.00 +0.33%Change % Change Last
Nikkei 225 10,620.87 +133.88 +1.28%
Hang Seng 23,598.9 -36.20 -0.15%
S&P/ASX 200 4,810.22 +22.40 +0.47%
Shanghai Composite 2,302.6 -18.31 -0.79%
FTSE 100 6,264.91 +67.27 +1.09%
CAC 40 3,752.17 +26.00 +0.70%
DAX 7,748.13 +40.59 +0.53%
S&P 500 1,494.82 +0.01 0.00%
NASDAQ 3,130.38 -23.29 -0.74%
Dow 13,825.33 +46.00 +0.33%
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