Market Close Update - In European Equity Markets stocks extended a seven-year high as the European Central Bank was said to plan further stimulus measures. The Stoxx Europe 600 Index rose 0.6 percent to 358.12 at the close of trading inLondon, reversing earlier losses after two euro-area central-bank officials said the ECB Executive Board has recommended asset purchases of 50 billion euros ($58 billion) a month until December 2016. Among companies moving on corporate news, Alstom SA (ALO) advanced 4 percent after posting an increase in third-quarter revenue. The French company selling its energy-equipment businesses to General Electric Co. also reiterated its forecasts for sales growth and operating margin. Greeces ASE Index slid 2.4 percent for a second day of losses as the country prepares for an election on Jan. 25. The U.K.s FTSE 100 Index gained 1.6 percent. In Currency Markets the euro was at almost an 11-year low as the European Central Bank prepares for a policy meeting at which they are forecast to adopt a sovereign-bond purchase program under the quantitative-easing strategy. The 19-nation shared currency pared gains against the dollar after Bloomberg reported that two central-bank officials said policy makers will propose purchasing 50 billion euros ($58 billion) in assets per month through the end of 2016. A decision will be announced tomorrow in Frankfurt. The yen climbed for the first time in four days the Bank of Japan refrained from adding to stimulus. The euro appreciated 0.4 percent to $1.1599 at 11:30 a.m. New York time after adding as much as 1.1 percent. It declined to $1.1460 on Jan. 16, the least since 2003. The shared currency dropped 0.6 percent to 136.47 yen. Japans currency strengthened 0.9 percent to 117.73 per dollar. In Commodities Markets oil rebounded from the biggest drop in a week amid signs that prices near a 5 1/2-year low are slowing drilling in the U.S. Futures rose as much as 3.7 percent in New York and 3.3 percent in London. BHP Billiton Ltd., the largest overseas investor in U.S. shale, said it will cut the number of active drill rigs in the country by almost 40 percent. The rapid decline in oil prices may deter investment in all types of energy needed to meet future demand, the head of the International Energy Agency said. West Texas Intermediate for March delivery gained 95 cents, or 2 percent, to $47.42 a barrel at 11:30 a.m. on the New York Mercantile Exchange. Brent for March settlement climbed 61 cents, or 1.3 percent, to $48.60 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude traded at a premium of $1.24 to WTI. In US Equity Markets stocks rose for a third day as energy shares rallied and speculation grew that theEuropean Central Bank will provide more stimulus. Netflix Inc. jumped 18 percent as it posted subscriber growth that beat projections and said it will complete its global expansion within two years. Energy companies climbed 1.6 percent for a third day of gains. International Business Machines Corp. slipped 2.8 percent after its earnings forecast trailed some estimates. Qualcomm Inc. dropped 1.1 percent as people familiar with the matter said Samsung Electronics Co. will not use its chip in the next version of its smartphone. The S&P 500 (SPX) rose 0.7 percent to 2,036.65 at 11:30 a.m. in New York. All 10 major groups in the S&P 500 rose. Energy and materials shares had the biggest advance, adding at least 0.9 percent. In Bond Markets Italian and Spanish bonds pared declines as the European Central Bank Executive Board was said to propose expanding its stimulus to include buying 50 billion euros ($58 billion) a month in sovereign debt through the end of 2016. The plan was to be discussed Wednesday by the ECBs Governing Council, which could still change the design significantly, according to two euro-area central-bank officials who have seen the document. Policy makers are set to meet in Frankfurt on Thursday. The ECB declined to comment. Member Ewald Nowotny said at a Euromoney conference in Vienna that bankers should not get carried away by one meeting and instead have a longer-term view. Italys 10-year yield rose three basis points, or 0.03 percentage point, to 1.70 percent at 4:30 p.m. London time after earlier climbing as much as eight basis points.
Posted on: Wed, 21 Jan 2015 18:21:26 +0000