Asian markets traded mixed on Thursday. The Nikkei rose .7% to 10123 a 7-month high, as a drop in the yen lifted exporters, with Mazda up 6.1%, Honda up 3.5%, and Canon up 3.7%. Korea’s Kospi eased fractionally, and the ASX 200 declined .2% as miners weighed on the index. In greater China, the Shanghai Composite declined .7% to 2374, extending Wednesday’s sharp 2.6% drop, while the Hang Seng edged up .2%.
In Europe, stocks closed mostly higher, as the DAX climbed .9%, and the CAC40 advanced .4%. The FTSE trailed behind, slipping .1%.
US indexes advanced, with the S&P 500 crossing the 1400 mark for the first time since 2008. The Dow tacked on 59 points to 13253, the Nasdaq rose .5%, and the S&P 500 gained .6% to 1403.
Recent Stock Market Rally Pushes S&P 500 Above 1400
Bank shares continued to rally, with Bank of America up 4.5%, and Citigroup up 3%.
Currencies
Foreign currencies climbed against the US dollar after yesterday’s rout. The euro rose .4% to 1.3080, and the pound gained .3% to 1.5714. The Swiss franc and Australian dollar both rallied .8%, and the yen rose .2% to 83.55, reversing from an earlier drop down to 84.17.
Economic Outlook
Thursday’s economic reports were quite upbeat. Weekly unemployment claims dropped to 351K, 14K better than last week, and better than forecast. PPI rose .4%, less than expected, and both the Empire State manufacturing index, and the Philly Fed index exceeded analyst forecasts.
Bonds Tumble, Commodities Slide As Dollar Gains
EquitiesMost Asian markets rallied for a second day on Wednesday as the Fed’s stress test list indicated that most US banks are in healthy shape. The Nikkei advanced 1.5% to 10051, its highest close since July, the Kospi gained 1% to 2045, and the ASX 200 rose .9%. In contrast, the Shanghai Composite tumbled 2.6% after the government dismissed the possibility of an easing in property restrictions. Property shares fell 3.7% on the news. In Hong Kong, the Hang Seng closed down .2%.
European markets closed mixed as well. The DAX rallied 1.2%, the CAC40 added .4%, while the FTSE slipped .2%. Banking shares climbed as investors cheered the stress test news, with the sector gaining 1.5%.
Back in the US, stocks closed little changed after Wednesday’s spike. The Dow rose 16 points to 13195, the S&P 500 eased .1%, and the Nasdaq closed flat.
Currencies
The US dollar rallied in the currency markets on Wednesday. The Australian dollar dropped .8% to 1.0450, as the slide in metals weighed heavily on the commodity currency. The euro shed .4% to 1.3030, the Swiss franc skidded .7% to 1.0748, and the pound eased .2% to 1.5677. The yen continued to fall, sliding .7% to 83.6925.
Economic Outlook
Import prices rose .4%, less than expected, while the US current account deficit surged to $124 billion, a 3-year high.
Stocks Mixed On Disappointing US Data
EquitiesAsian markets traded mixed on Friday. The Nikkei managed to stretch its winning streak to 4, inching up .1% to 10130., and the Shanghai Composite climbed 1.3% to 2405 Amongst the losers, the Kospi slid .5% to 2034, the ASX 200 closed down fractionally, and the Hang Seng declined .2% to 21318.
In Europe, stocks gained, led by insurance companies, which advanced 2% after gaining concessions in the latest EU capital requirements. The FTSE and CAC40 climbed .4%, and the DAX rose .2%.
The major US indexes closed mixed in narrow trading. The Dow declined 20 points to 13234, ending a 7-day winning streak, the S&P 500 rose .1%, to 1404 and the Nasdaq eased 1 point to 3055. The VIX dropped 6.2% to 14.47, and touched a 5-year low of 13.76 earlier in the day.
Research in Motion jumped 6.9% on rumors of a potential investment by Samsung in the company.
Bank of America jumped 6.1% to 9.80, as the recent rally in the stock continued.
Currencies
The dollar tanked on Friday, pressured by disappointing US economic data. The Australian dollar surged 1.4% to 1.0594, while the euro and pound rallied 1.1% to 1.3176 and 1.5838 respectively. The yen rose .2% to 83.45, and the Canadian dollar settled flat at .9921.
Economic Outlook
Friday’s economic data was universally weak. CPI data was in line with estimates, rising at .4%, although Core CPI rose just .1%, less than expected. Consumer Sentiment unexpectedly declined last month, slipping to 74.3 from 75.3. Industrial Production was flat, significantly weaker than last month’s .4% growth.
US Stocks Gain, Apple Settles Above $600
EquitiesAsian markets traded mostly higher on Monday. In Japan, the Nikkei ticked up .1% to 10142, extending its winning streak to 5 days, and in Korea, the Kospi advanced .6% to 2047. Australia’s ASX 200 gained.3% as miners rallied, and the Shanghai Composite edged up .2%. The Hang Seng slumped 1% to 21115, as negative comments regarding Chinese banks weighed on the index.
In Europe, stock closed modestly lower. The CAC40 dropped .5%, while the FTSE and DAX declined less than .1%.
Meanwhile, US stocks gained, but ended off their highs. The Nasdaq rallied .8% to 3078, the S&P 500 climbed .4% to 1410, and the Dow rose 7 points to 13239.
Rumors of a secondary offering by Bank of America hit the company’s shares in the afternoon, which dropped 2.8 to 9.53.
Apple settled at 601.10, up 2.7% after announcing a $2.65 quarterly dividend, and a $10 billion stock buyback plan.
US Steel surged 6.4% after UBS upgraded the stock.
Currencies
The dollar dropped against foreign currencies as investors continued to shift capital into riskier investments. The euro rose .5% to 1.3242, the pound gained .4%, and the Swiss franc rallied .6% to 1.0977. The Canadian dollar advanced .5% to .9870, and the yen rose .1% to 83.34.
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Euro's Bounce Continues
Economic OutlookThe NAHB houing market index came in flat at 28, but was below expectations. 28 is the highest level recorded since June 2007.
Signs Of China Slowdown Hit Stocks
EquitiesAsian markets closed mostly lower as indications of a slowdown in China hurt the region. after mining giant, BHP Billiton, said it is seeing signs of “flattening” demand from China. China’s Shanghai Composite sank 1.4% and the Hang Seng slumped 1.1%, while the ASX 200 dropped .4%. Korea’s Kospi closed down .2%, as did the Nikkei.
The negative outlook for China smacked European stocks. the DAX fell 1.4%, the CAC40 dropped 1.3%, and the FTSE shed 1.2%. Auto makers tumbled 4% following a report that Chinese car sales would fall short of forecasts, and miners tanked 3.6%.
European Auto Makers Tumble 4%
US stocks closed lower as well, but were well off their session lows. The Dow erased 69 points to settle at 13170, after dropping 110 points in the morning, the S&P 500 slipped .3% to 1406, and the Nasdaq eased .1% to 3074.
Currencies
The weak outlook for metals hit the Australian dollar particularly hard, dropping 1.2% to 1.0475. The euro eased .1% to 1.3223, the pound declined .2% to 1.5858, and the yen fell .4% to 83.71.
The Swiss franc settled flat, and the Canadian dollar fell .5% to .9918.
Economic Outlook
Building permits climbed to .72M, a 3-year high, while housing starts slipped to .70M, dropping 1.1% from last month.