Interest rates on hold spurs Wall St rally
March 16, 2010
Tuesday’s decision by the Federal Reserve to keep interest rates in the US near zero was expected, however was still warmly received by investors. The confirmation that interest rates would remain at historic lows for an “extended period” saw the S&P 500 close at 18-month highs, while the Dow has posted gains for six straight sessions.
In economic news, new home construction fell 5.9% to an annual rate of 575,000 in February, from a revised 622,000 during January. The consensus estimate was for a fall to 570,000.
The Dow Jones rose 43.83 points, or 0.41%, to 10,685.98, the S&P 500 gained 8.95 points, or 0.78%, to 1,159.46 and the NASDAQ picked up 15.80 points, or 0.67%, to 2,378.01.
Citigroup rallied 3.3% through the $4 per share barrier, while Bank of America and Goldman Sachs dipped 1.1% and 1% respectively.
Among tech stocks, Intel spiked 3.6% after unveiling a new, faster processor.
For the sectors other major players it was an unremarkable day. Microsoft and Apple tacked on 0.3%.
Google climbed 0.4%, while rival Yahoo! dipped 0.6%.
The only original Dow component General Electric surged 4% after saying it would post bigger profits and pay bigger dividends in 2010.
New building permits fell less than expected and coupled with new home construction, two of America’s major home builders, KB Home and Pulte Home saw gains. Their shares rose 2.3% and 2.8% respectively.
Elsewhere Harley Davidson spiked 7% on reports it could be the target of a leveraged buyout.
NYMEX light crude for April delivery rose US$1.90 to settle at US$81.70 a barrel.
The oil sector’s largest stock, Exxon Mobil, was 0.3% above the line.
COMEX gold rose US$17.10 per ounce to settle at $US1,122.50.
European Markets
European stocks rallied Tuesday as the rating agency Standard & Poor’s confirmed it would not downgrade Greece’s credit rating. Energy and resource stocks were stronger as oil and base metal prices tracked higher.
The benchmark UK FTSE 100 added 26.58, or 0.48% to 5,620.43. The French CAC40 advanced 48.04, or 1.23% to 3,938.95, while the German DAX climbed 67.43, or 1.14% to 5,970.99.
UK banking giant Barclays rallied 2.5%, while RBS and HSBC tacked on 1.3% and 0.4% respectively.
BNP Paribas and Credit Suisse were 2.3% and 2.7% stronger.
Heading into Easter, Swiss chocolatier Lindt rallied 3.6% after forecasting around 10% growth from next year.
British Airways spiked 4.5%, after reaching an agreement with the unions to reduce a pension deficit. The rise brought year-to-date changes to nearly 32%.
French and German automakers Renault and Peugeot both climbed 2.3% on reports the two car companies would create a partnership to cut costs.
Aussie mining peers, BHP Billiton and Rio Tinto climbed 0.9% and 1.2%.
Among oil plays, BP put on 0.5%. Royal Dutch Shell gained 1.3%, while French refiner Total added 0.6%.
Japanese Markets
Profit taking saw Japan’s Nikkei lose ground for the first time in four sessions. Investors were hesitant to take positions ahead of monetary policy decisions by the US Federal Reserve and the Bank of Japan later in the week.
The Nikkei 225 fell 30.27, or 0.28% to 10,721.71.
Canon lost 1.3% after reaching a seven-week high the previous day, while Pioneer dropped 2.5% as the yen strengthened against the greenback and euro.
Sony slid 0.7%.
Automakers Honda and Nissan shed 1.5% and 1.6%, while Toyota bucked the trend, adding 1.3%.
Sony Financial Holdings spiked 14% after the insurance and banking unit said it would increase its bond holdings to reduce risk.
Trading companies Mitsui & Co. and Itochu Corp weakened 1.2% and 2.1% after a fall in commodities prices.
Oil explorer Inpex Corp shed 1.2%.
Takashimaya Co. slid 2.4% after a broker downgrade on the department store operator’s stock.
Hong Kong Markets
In economic news, new home construction fell 5.9% to an annual rate of 575,000 in February, from a revised 622,000 during January. The consensus estimate was for a fall to 570,000.
The Dow Jones rose 43.83 points, or 0.41%, to 10,685.98, the S&P 500 gained 8.95 points, or 0.78%, to 1,159.46 and the NASDAQ picked up 15.80 points, or 0.67%, to 2,378.01.
Citigroup rallied 3.3% through the $4 per share barrier, while Bank of America and Goldman Sachs dipped 1.1% and 1% respectively.
Among tech stocks, Intel spiked 3.6% after unveiling a new, faster processor.
For the sectors other major players it was an unremarkable day. Microsoft and Apple tacked on 0.3%.
Google climbed 0.4%, while rival Yahoo! dipped 0.6%.
The only original Dow component General Electric surged 4% after saying it would post bigger profits and pay bigger dividends in 2010.
New building permits fell less than expected and coupled with new home construction, two of America’s major home builders, KB Home and Pulte Home saw gains. Their shares rose 2.3% and 2.8% respectively.
Elsewhere Harley Davidson spiked 7% on reports it could be the target of a leveraged buyout.
NYMEX light crude for April delivery rose US$1.90 to settle at US$81.70 a barrel.
The oil sector’s largest stock, Exxon Mobil, was 0.3% above the line.
COMEX gold rose US$17.10 per ounce to settle at $US1,122.50.
European Markets
European stocks rallied Tuesday as the rating agency Standard & Poor’s confirmed it would not downgrade Greece’s credit rating. Energy and resource stocks were stronger as oil and base metal prices tracked higher.
The benchmark UK FTSE 100 added 26.58, or 0.48% to 5,620.43. The French CAC40 advanced 48.04, or 1.23% to 3,938.95, while the German DAX climbed 67.43, or 1.14% to 5,970.99.
UK banking giant Barclays rallied 2.5%, while RBS and HSBC tacked on 1.3% and 0.4% respectively.
BNP Paribas and Credit Suisse were 2.3% and 2.7% stronger.
Heading into Easter, Swiss chocolatier Lindt rallied 3.6% after forecasting around 10% growth from next year.
British Airways spiked 4.5%, after reaching an agreement with the unions to reduce a pension deficit. The rise brought year-to-date changes to nearly 32%.
French and German automakers Renault and Peugeot both climbed 2.3% on reports the two car companies would create a partnership to cut costs.
Aussie mining peers, BHP Billiton and Rio Tinto climbed 0.9% and 1.2%.
Among oil plays, BP put on 0.5%. Royal Dutch Shell gained 1.3%, while French refiner Total added 0.6%.
Japanese Markets
Profit taking saw Japan’s Nikkei lose ground for the first time in four sessions. Investors were hesitant to take positions ahead of monetary policy decisions by the US Federal Reserve and the Bank of Japan later in the week.
The Nikkei 225 fell 30.27, or 0.28% to 10,721.71.
Canon lost 1.3% after reaching a seven-week high the previous day, while Pioneer dropped 2.5% as the yen strengthened against the greenback and euro.
Sony slid 0.7%.
Automakers Honda and Nissan shed 1.5% and 1.6%, while Toyota bucked the trend, adding 1.3%.
Sony Financial Holdings spiked 14% after the insurance and banking unit said it would increase its bond holdings to reduce risk.
Trading companies Mitsui & Co. and Itochu Corp weakened 1.2% and 2.1% after a fall in commodities prices.
Oil explorer Inpex Corp shed 1.2%.
Takashimaya Co. slid 2.4% after a broker downgrade on the department store operator’s stock.
Hong Kong Markets
The Hang Seng fell for a third straight session yesterday. In fluctuating, directionless trade, banks were mixed, while oil stocks lost ground.
The Hang Seng fell 56.17, or 0.27% to 21,022.93.
Among the banks, Bank of China and the index’s largest stock, HSBC were both 0.3% below the line, while ICBC was 0.5% stronger.
Sun Hung Kai Properties, the world’s largest developer by market value, retreated 1.4%.
Car maker BYD put on 8% after the Warren Buffett backed company beat quarterly earnings expectations and gave a bullish view of the broader Chinese market.
Rival automaker Geely Automobiles fell 1.2%.
China Shineway Pharmaceuticals spiked 11.5% after Goldman Sachs upgraded the stock to ‘buy’.
Off-shore oil producer, Cnooc lost 0.6%, while Petrochina was down 1%
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