DJIA
soared 1.5% to settle at 13,075.7. NASDAQ jumped 2.2% to close at 2,958.1.
S&P 500 surged 1.9% to end at 1, 386.0.
Nikkei
225 index is trading 0.6% higher at 8,619.8.
FTSE
100 gained 1.0% to close at 5,627.2.
FTSEurofirst
300 index added 1.3% to 1,056.5.
In
Asia, crude oil for September delivery is trading 0.7% or $0.62 higher at
$90.75 per barrel.
At
0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5714, 0.1%
higher against the EUR at €1.2788, and 0.4% lower against the JPY at ¥123.15.
US Market
Snapshot
US
markets rose sharply on Friday, as GDP data for the second quarter of 2012
matched market expectations and as Eurozone fears eased, amid signs of actions
by the European leaders to address the region’s debt troubles. Hopes of further
stimulus from the Federal Reserve and the ECB also underpinned the gains.
Pharmaceutical company, Merck rallied 4.1%, as its second-quarter earnings
surpassed market estimates. Amazon.com jumped 7.9%, as its second-quarter
operating income exceeded the past company guidance, while Expedia, up 20.1%,
also benefited from its better-than-expected second quarter results. Chevron
added 0.9%, as its second quarter earnings topped expectations. Financials,
American Express, Travelers, Bank of America and JP Morgan Chase rallied
between 1.3% and 3.0%, amid news that German and French leaders had made a
pledge to protect the Eurozone at all costs.
DJIA
soared 1.5% to settle at 13,075.7. NASDAQ jumped 2.2% to close at 2,958.1.
S&P 500 surged 1.9% to end at 1, 386.0.
Asian Market
Snapshot
Asian
stock markets are trading higher this morning, amid hopes that the Federal
Reserve and the ECB would adopt dovish monetary policies to stimulate growth
and on optimism that the European lawmakers would come up with solid measures
to support the euro. In Japan, Fujifilm Holdings, IHI Corp and Konica Minolta
Holdings are trading higher, following their upbeat first-quarter results. In
Hong-Kong, shares of HSBC Holdings gained, ahead of its quarterly earnings
results, scheduled to be released later in the day. Bank of China and China
Construction Bank paced gains, as risk sentiment improved across the board. In
South Korea, Samsung Heavy Industries and Hyundai Heavy Industries climbed.
Nikkei
225 index is trading 0.6% higher at 8,619.8. Kospi index is trading 0.8%
higher, at 1,844.0. Hang Seng index is trading 1.4% higher, at 19,537.2.
UK Market
Snapshot
UK
markets rallied on Friday, as reports surfaced that the ECB may buy Spanish and
Italian bonds and after US economic data marginally beat market expectations.
Barclays jumped 8.7% and emerged as the top gainer in the FTSE 100 index, as it
posted forecast-beating half-year profits, while Lloyds Banking Group gained
3.7%, boosted by favourable comments from RBC and UBS. Miners, BHP Billiton,
ENRC, Rio Tinto and Vedanta Resources rallied between 1.7% and 3.1%, tracking a
rise in metal prices. SABMiller rose 1.4%, after S&P Equity Research
upgraded its rating on the stock to “Hold” from “Sell” and increased its target
price for the stock. Commodities
bellwether, Glencore International rose 1.6%, as it inched closer to completion
of its £3.9 billion takeover of Canadian agricultural grain handler, Viterra,
following approval by Australian authorities.
FTSE
100 gained 1.0% to close at 5,627.2, while FTSE 250 surged 1.3% to end at
11,179.0.
European Market
Snapshot
Other
European markets closed higher on Friday, as investors speculated that the ECB
would announce fresh measures to reduce Italy and Spain’s borrowing costs, following
upbeat comments from ECB President Mario Draghi, French President François
Hollande and German Chancellor Angela Merkel, who all pledged to safeguard the
Eurozone. Daimler added 2.8%, after it reported a 10.0% jump in its
second-quarter sales. Amongst other automakers, Renault, BMW, Peugeot and
Volkswagen advanced between 0.4% and 6.4%. Banking stocks, Societe Generale,
BNP Paribas, Deutsche Bank and Commerzbank jumped between 1.8% and 6.1%, as
risk appetite among investors increased. European Aeronautic Defence &
Space gained 5.7%, after it revealed stronger-than-expected second-quarter
earnings.
FTSEurofirst
300 index added 1.3% to 1,056.5. German DAX Xetra 30 rose 1.6% to 6,689.4.
French CAC-40 closed 2.3% higher, at 3,280.2
Commodities
In
Asia, crude oil for September delivery is trading 0.7% or $0.62 higher at
$90.75 per barrel. On Friday, crude oil for September delivery gained 0.8% or
$0.74 to $90.13 per barrel, amid rising hopes that the European Central Bank
(ECB) and the US Federal Reserve would take further steps to support economic
growth. However, gains were capped, after a report indicated that US economic
growth slowed in the second-quarter of 2012.
Gold
for immediate delivery is trading 0.1% lower today, at $1,621.20 per ounce.
Gold for August delivery settled up 0.2% or $2.90 at $1,618 per ounce on
Friday, amid optimism of more stimulus measures from the ECB and Federal
Reserve. However, gains were limited, as the dollar managed to claw back some
of its losses against the euro and the yen.
Currencies
At
0400 BST today, the GBP is trading 0.1% lower against the USD at $1.5714, 0.1%
higher against the EUR at €1.2788, and 0.4% lower against the JPY at ¥123.15.
The
EUR is trading 0.2% lower against the USD at $1.2288 and 0.5% down against the
JPY at ¥96.30, ahead of a report due today which is expected to show that
consumer confidence in the Eurozone dropped in July. The EUR also fell, amid
concerns that a report due tomorrow might show that unemployment in the region
climbed to a record in July, and after Moody’s Investors Service, in its Credit
Outlook, indicated that the ECB’s commitment to preserve euro is not sufficient
to resolve the sovereign debt crisis.
The
Soutine Korean WON is trading lower against the USD, after data showed that
South Korean manufacturers’ confidence fell to the lowest level in more than
three years in July.
On
Friday, the EUR ended higher against the USD, after German Chancellor Angela
Merkel and French President Francois Hollande, in a joint statement, stated
that they would do “everything” necessary to protect the European common
currency. The EUR also rose, after the French daily Le Monde reported that the
ECB and Eurozone governments would be buying Spanish and Italian debt. However,
gains were capped, after the German central bank stated that it remained
critical of the ECB's bond-buying program and reiterated its opposition to
giving a banking license to the Eurozone's bailout fund.
The USD ended lower against
the EUR and the GBP, after a government report showed that US economic growth
slowed in the second-quarter of 2012, boosting speculation of further monetary
easing by the Federal Reserve.
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