Thursday June 25, 2009
LONDON: European stock markets posted solid gains on Wednesday in line with Wall Street where investors were cheered by an unexpected rise in US durable goods orders.
In London the FTSE 100 index closed at 4,279.98 points, up 1.18 percent, while in Paris the CAC 40 rose 2.18 percent to finish at 3,184.76. The Frankfurt Dax added 2.74 percent to reach 4,836.01 points.
Elsewhere there were gains of 2.54 percent in Brussels, 3.12 percent in Milan, 2.39 percent in Amsterdam, 2.88 percent in Milan and 2.29 percent on the Swiss Market Index.
US stocks opened in positive territory Wednesday after a report of a jump in durable goods orders in May, but the market remained cautious awaiting the conclusion of the Federal Reserve policymaking meeting.
The Dow Jones Industrial Average was up 1.16 percent at 8,419.49 at mid-day while the tech-dominant Nasdaq had risen 2.19 percent to 1,803.63.
A government report before the opening bell showed orders for US long-lasting manufactured goods surged unexpectedly in May, pointing to recovery in the embattled sector amid the prolonged recession.
The Commerce Department said durable goods orders rose a seasonally adjusted 1.8 percent in May from April. Most analysts had projected a decline of 0.9 percent.
The report "helped boost sentiment, soothing some concerns that the recent rally in the equity markets may have gotten ahead of the economic reality," said analysts at Charles Schwab & Company in a note to clients.
However, with the conclusion of Wednesday's Federal Open Market Committee meeting, "traders may be treading relatively cautiously in early action."
The FOMC is seeking to steer monetary policy amid tentative signs of recovery from recession.
Economists expected the Fed to maintain its near-zero interest rate policy.
US stocks made a modest pullback after data showed new home sales during May hit an annualized rate of 342,000 units, below the 360,000 unit consensus forecast.
Given the revisions to the prior month, new home sales were down 0.6 percent month-over-month. They were expected to increase 2.3 percent.
Miners were among the day's big winners in London, with Anglo American surging 10.17 percent to 1,829 pence after Swiss rival Xstrata said it would still try to convince it of the advantages of a merger. Anglo American on Monday spurned the proposal.
Elsewhere in the sector Lonmin added 7.05 percent to close at 1,214 pence while Rio Tinto rose 5.55 percent to 2,131 pence.
In Paris the finance sector, which suffered losses earlier this week on renewed fears for economic recovery prospects, bounced back.
The BNP Paribas bank added 4.46 percent to finish at 45.86 euros while rival Societe Generale gained 3.16 percent to close at 39.46 euros.
Banks were also in demand in Frankfurt, where Deutsche Bank rose 6.60 percent to 42.85 euros and Deutsche Borse rose 2.85 percent to 56.61 euros.
Steel makers ThyssenKrupp and Salzgitter, bolstered by the durable goods data from the United States, rose 6.31 percent to 18.04 euros and 4.60 percent to 62.72 euros respectively.
In Asian stock markets on Wednesday, Tokyo rose 0.43 percent as a weaker yen and gains among commodity-related stocks helped the market to recover some of the previous day's heavy losses.
Hong Kong share prices closed 2.02 percent higher on Wednesday, as investors grabbed bargains in property firms after a heavy fall in the previous session.
(AFP)
In London the FTSE 100 index closed at 4,279.98 points, up 1.18 percent, while in Paris the CAC 40 rose 2.18 percent to finish at 3,184.76. The Frankfurt Dax added 2.74 percent to reach 4,836.01 points.
Elsewhere there were gains of 2.54 percent in Brussels, 3.12 percent in Milan, 2.39 percent in Amsterdam, 2.88 percent in Milan and 2.29 percent on the Swiss Market Index.
US stocks opened in positive territory Wednesday after a report of a jump in durable goods orders in May, but the market remained cautious awaiting the conclusion of the Federal Reserve policymaking meeting.
The Dow Jones Industrial Average was up 1.16 percent at 8,419.49 at mid-day while the tech-dominant Nasdaq had risen 2.19 percent to 1,803.63.
A government report before the opening bell showed orders for US long-lasting manufactured goods surged unexpectedly in May, pointing to recovery in the embattled sector amid the prolonged recession.
The Commerce Department said durable goods orders rose a seasonally adjusted 1.8 percent in May from April. Most analysts had projected a decline of 0.9 percent.
The report "helped boost sentiment, soothing some concerns that the recent rally in the equity markets may have gotten ahead of the economic reality," said analysts at Charles Schwab & Company in a note to clients.
However, with the conclusion of Wednesday's Federal Open Market Committee meeting, "traders may be treading relatively cautiously in early action."
The FOMC is seeking to steer monetary policy amid tentative signs of recovery from recession.
Economists expected the Fed to maintain its near-zero interest rate policy.
US stocks made a modest pullback after data showed new home sales during May hit an annualized rate of 342,000 units, below the 360,000 unit consensus forecast.
Given the revisions to the prior month, new home sales were down 0.6 percent month-over-month. They were expected to increase 2.3 percent.
Miners were among the day's big winners in London, with Anglo American surging 10.17 percent to 1,829 pence after Swiss rival Xstrata said it would still try to convince it of the advantages of a merger. Anglo American on Monday spurned the proposal.
Elsewhere in the sector Lonmin added 7.05 percent to close at 1,214 pence while Rio Tinto rose 5.55 percent to 2,131 pence.
In Paris the finance sector, which suffered losses earlier this week on renewed fears for economic recovery prospects, bounced back.
The BNP Paribas bank added 4.46 percent to finish at 45.86 euros while rival Societe Generale gained 3.16 percent to close at 39.46 euros.
Banks were also in demand in Frankfurt, where Deutsche Bank rose 6.60 percent to 42.85 euros and Deutsche Borse rose 2.85 percent to 56.61 euros.
Steel makers ThyssenKrupp and Salzgitter, bolstered by the durable goods data from the United States, rose 6.31 percent to 18.04 euros and 4.60 percent to 62.72 euros respectively.
In Asian stock markets on Wednesday, Tokyo rose 0.43 percent as a weaker yen and gains among commodity-related stocks helped the market to recover some of the previous day's heavy losses.
Hong Kong share prices closed 2.02 percent higher on Wednesday, as investors grabbed bargains in property firms after a heavy fall in the previous session.
(AFP)
Posts
Mohit Jain
June 25, 2009 at 9:44 PM
The markets are range bound at the month and that could be the scenario for a couple weeks until there is a break down or up.
Its the ideal time for day traders to be active in the trading sessions, buy on dips and short on rise. I have made €1000 a week on average each for the last 3 months ever since the markets started the huge upswing and I have pocketed a net of €10,000 in the past 3 months. Just remain invested and take ur call on a day to day basis.
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