Market Close Update - In European Equity Markets stocks advanced for the third time in four days, pushed higher by drugmakers and Greek equities. The Stoxx Europe 600 Index added 0.6% to 339.87 at the close of trading in London, after earlier climbing as much as 1.1% and falling 0.4%. Roche Holding AG helped send health-care companies up 0.9%, and Greeces ASE Index climbed 3.8%, completing its biggest two-day rally since November. The Spanish equity gauge gained 0.8% today, while Italys FTSE MIB Index added 1%. Gauges of energy stocks and commodity producers dropped for a second day. Seadrill Ltd. slid 5.8% to its lowest price since April 2009, and Hunting Plc (HTG) slumped 8.1% as Barclays Plc cut its rating on the stock In Currency Markets the yen gained against most of its major counterparts on demand for a haven as oil declined with U.S. stocks. A gauge of the dollar was at almost the highest level in a decade before economic data this week that may shed light on the pace of U.S. growth as the Federal Reserve considers the timing of its first interest-rate increase since 2006. The euro dropped before the European Central Bank meets next week amid talk it will announce sovereign-bond purchases. The yen was little changed at 118.55 per dollar at 11:30 a.m. New York time after jumping 1% on Jan. 9. It strengthened 0.1% to 140.18 per euro for a third day of gains. The 19-nation shared currency fell 0.1% to $1.1824 after falling 1.3% last week and touching $1.1754 on Jan. 8, the lowest since December 2005. In Commodities Markets oil fell to the lowest level in more than 5 1/2 years after Goldman Sachs Group Inc. and Societe Generale SA reduced their price forecasts. West Texas Intermediate decreased as much as 5.1% to $45.90 a barrel, and Brent 5.9% to $47.18. Crude has to stay lower for longer if investment in shale is to be curtailed to re-balance the global market, according to Goldman analysts. Prices need to return to $100 a barrel for economic equilibrium, Venezuelan President Nicolas Maduro said in Iran during a tour of Middle Eastern OPEC members. WTI for February delivery declined $1.95, or 4%, to $46.41 a barrel at 11:30 a.m. on the New York Mercantile Exchange. Brent for February settlement dropped $2.63, or 5.3%, to $47.48 a barrel on the London-based ICE Futures Europe exchange. In US Equity Markets stocks fell, after the Standard & Poors 500 Index posted its first back-to-back weekly retreat since October, as the continuing selloff in crude pulled down energy shares before the start of corporate earnings. Energy shares tumbled 2.7%, the most among 10 groups in the S&P 500, (SPX) as crude dropped 4%. Tiffany & Co. lost 12% after the jewelry retailer lowered its annual forecast after sales declined during the holiday. SanDisk Corp. fell the most in almost six months after reporting preliminary results below its own estimates. The S&P 500 slid 0.6% to 2,032.30 at 12:00 p.m. in New York. Technology companies in the S&P 500 declined 1% as SanDisk lost 14 percent for the biggest drop in the broader index. Health-care companies advanced 0.2% amid corporate deals. Bristol-Myers Squibb Co. climbed 4.5%. In Bond Markets Greeces bonds climbed, sending 10-year yields down by the most since October, amid easing concern that a victory for the anti-austerity Syriza party in this months elections would result in the nation leaving the euro region. Three-year notes rose a third day and Greek stocks rallied after Syrizas Alexis Tsipras said in a Jan. 10 interview with Real News that a government led by his party would repay debt due in March and keep Greece in the currency bloc. The latest polls put the opposition party ahead, but short of a level required for an absolute majority. Amid signs contagion from Greece is being contained, Portugal hired banks to sell 10- and 30-year bonds, according to a person familiar with the matter. Greek 10-year yields fell 68 basis points, or 0.68 percentage point, to 9.47% at 4:30 p.m. London time, the biggest drop since Oct. 17.
Posted on: Mon, 12 Jan 2015 21:02:18 +0000