US stocks end at records, lead global equities higher

Traders work on the floor of the New York Stock Exchange, October 31, 2013. — Reuters picTraders work on the floor of the New York Stock Exchange, October 31, 2013. — Reuters picNEW YORK, July 20 — All three major US equity indices rose to fresh records yesterday on solid earnings and higher oil prices, concluding a sunny session for global .

The Dow, S& P 500 and Nasdaq all ended at new peaks as investors shrugged off worries about Washington, where President Donald Trump’s agenda has languished amid opposition to his health care reform proposal.

Bourses in Europe were higher ahead of Thursday’s European meeting. Tokyo, Hong Kong and Shanghai also all rose.

Earnings growth among companies in the S& P 500 has thus far been “much better” than expected, said Art Hogan, chief market strategist at Wunderlich Securities. 



“That is helping the and is the focus this week,” Hogan said.

Other elements that helped boost stocks included better-than-expected housing data and a bullish US oil inventory report that supported oil prices and boosted shares of petroleum-linked companies.

Maris Ogg, president of Tower Bridge Advisors, said sentiment has also been boosted by the improved outlook in Europe following the election of French president Emmanuel Macron as well as the recognition that Trump is a business-friendly president, even if his agenda looks uncertain.

“The market is recognizing we are in a pretty good environment and we are at the beginning of a cycle that could on for quite a while,” Ogg said.

Among US companies reporting results, Morgan Stanley surged 3.3 per cent, but IBM and United Continental fell 4.2 per cent and 5.3 per cent after investors found fault with results.

Euro pulls back

The euro surged Tuesday to a near 15-month pinnacle at US$1.1583 (RM4.963), but pulled back to US$1.1513 on the eve of the ECB.

ECB chief Mario Draghi has expressed greater confidence in the economy in recent weeks and analysts are looking for him today to continue to prepare the ground for an eventual shift away from easy-money policy later this year through a tapering of the purchases.



Still, Kathy Lien, managing director of BK Asset Management, said ECB officials have been unnerved by the rise of the euro of late and warned the central bank will want to avoid giving the currency a further boost. 

“It is in their best interest to halt the one-way move, ease the euro off its highs by repeating that is not on a self-sustainable path, and then gradually set expectations for taper from a lower base,” she said. 

“That way… they could take the steam out of the rally.”

Key figures around 2100 GMT

New York – DOW: UP 0.3 per cent at 21,640.75 (close)

New York – S&P 500: UP 0.5 per cent at 2,473.83 (close)

New York – Nasdaq: UP 0.6 per cent at 6,385.04 (close)

London – FTSE 100: UP 0.6 per cent at 7,430.91 (close)



Frankfurt – DAX 30: UP 0.2 per cent at 12,452.05 (close)

Paris – CAC 40: UP 0.8 per cent at 5,216.07 (close)

EURO STOXX 50: UP 0.9 per cent at 3,155.79 (close)

Tokyo – Nikkei 225: UP 0.1 per cent at 20,020.86 (close)

Hong Kong – Hang Seng: UP 0.6 per cent at 26,672.16 (close)

Shanghai – Composite: UP 1.4 per cent at 3,230.98 (close)

Euro/dollar: DOWN at US$1.1513 from US$1.1554 

Pound/dollar: DOWN at US$1.3021 from US$1.3042



Dollar/yen: DOWN at 111.84 from 112.03 yen

Oil – North Sea: UP 86 cents at US$49.70 per barrel

Oil – West Texas Intermediate: UP 72 cents at US$47.12 per barrel. — AFP

Source: The Malay Mail Online






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