While you were sleeping.. U.S. stocks were mostly higher Wednesday, as continued strength in corporate-earnings reports helped investors shrug off weakness in European markets. The Dow Jones Industrial Average rose 14 points, or 0.08%, to 16443. The S&P 500 index gained less than one point to 1920 and the Nasdaq Composite Index advanced two points, or 0.05%, to 4355. The Commerce Department reported Wednesday that the U.S. trade deficit narrowed more than expected in June, likely boosting measures of second-quarter economic growth. US gains were a contrast to a selloff in European stocks that saw the Stoxx Europe 600 index closed three points down or 0.88% to 329. The FTSE 100 closed down 46 points or 0.69% to 6636, with Germany’s DAX shedding 60 points or 0.65% to 9130, and the CAC 40 finishing 26 points lower or 0.61% to 4207. Data showed that Italy slipped back into recession for the third time since 2008 and German manufacturing orders surprisingly tanked in June, deepening fears that the euro zones economic recovery is stalling. Chinas top economic planner (National Development and Reform Commission) has warned of increasing risk in the countrys corporate bond market and will probably raise the threshold for new issues in the part of the market it regulates. All companies that now need only to register with the NDRC to issue bonds may have to prove their asset-liability ratio is below 20 percent, down from the existing 30 percent. Industrial companies may have to demonstrate asset-liability ratios below 60 percent to avoid additional regulatory scrutiny for such bond issues, compared with 65 percent for now. Local government financing vehicles may in the future need to go through stricter procedures at 70 percent, among other tightening steps. The U.S. trade deficit narrowed 7 percent in June to $41.5 billion, which is the smallest gap since January.
Posted on: Thu, 07 Aug 2014 00:04:24 +0000
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