European Stocks Move Higher; US Data Eyed – Dow Jones

Published on 17 September 2010 by cwhornsby in Hornsby Energy Trading

LONDON (Dow Jones)–European stock markets moved sharply higher Friday, helped by positive leads from U.S. and Asian markets, with market participants looking ahead to U.S. economic data for further direction.

By 0805 GMT, the Stoxx Europe 600 index was up 0.9% at 265.96, while London’s FTSE 100 index added 1.0% at 5596.66. In Paris, the CAC-40 index was 1.4% higher at 3786.24, and in Frankfurt the DAX index gained 0.9% at 6302.43.

By 0805 GMT, the Stoxx Europe 600 index was up 0.9% at 265.96, while London’s FTSE 100 index added 1.0% at 5596.66. In Paris, the CAC-40 index was 1.4% higher at 3786.24, and in Frankfurt the DAX index gained 0.9% at 6302.43.

Friday sees ‘triple-witching’ expiry, when stock-index futures, stock-index options and single-stock options all expire on the same day.

Friday sees ‘triple-witching’ expiry, when stock-index futures, stock-index options and single-stock options all expire on the same day.

Despite the rise in uncertainty caused by this, it now appears that there is a clear short-term bias to the upside, said Altium Securities. Market participants now look to Friday’s economic data plate to build on momentum. The European calendar is light with only euro-zone current account data due at 0800 GMT, and thus the key highlights will be the release of U.S. CPI at 1230 GMT and the University of Michigan consumer confidence data at 1355 GMT.

Despite the rise in uncertainty caused by this, it now appears that there is a clear short-term bias to the upside, said Altium Securities. Market participants now look to Friday’s economic data plate to build on momentum. The European calendar is light with only euro-zone current account data due at 0800 GMT, and thus the key highlights will be the release of U.S. CPI at 1230 GMT and the University of Michigan consumer confidence data at 1355 GMT.

U.S. consumer prices are expected to rise by 0.3% in August, while the University of Michigan consumer sentiment index is expected to edge up to 69 in September from 68.9 in late August, said Newedge Group.

U.S. consumer prices are expected to rise by 0.3% in August, while the University of Michigan consumer sentiment index is expected to edge up to 69 in September from 68.9 in late August, said Newedge Group.

”Our call for a slight progress [in consumer sentiment] is based on the relative improvement in the August employment situation and recent gain in equities,” added Newedge.

”Our call for a slight progress [in consumer sentiment] is based on the relative improvement in the August employment situation and recent gain in equities,” added Newedge.

In terms of stocks, the basic resource sector added strong gains, with industrial metals trading higher on the London Metal Exchange after several down sessions, with traders saying the complex was showing surprising resilience, given its current elevated levels.

In terms of stocks, the basic resource sector added strong gains, with industrial metals trading higher on the London Metal Exchange after several down sessions, with traders saying the complex was showing surprising resilience, given its current elevated levels.

At the same time, Australia’s Energy Minister Martin Ferguson said Friday he hopes to provide industry certainty on a proposed new levy on mining company profits “sooner rather than later”, noting that both investment and government revenue streams are riding on the controversial tax proposal. Overall, the Stoxx Europe 600 basic resource index rose +1.6%.

At the same time, Australia’s Energy Minister Martin Ferguson said Friday he hopes to provide industry certainty on a proposed new levy on mining company profits “sooner rather than later”, noting that both investment and government revenue streams are riding on the controversial tax proposal. Overall, the Stoxx Europe 600 basic resource index rose +1.6%.

Meanwhile, shares in French retail giant Carrefour rose 6%, after it said it will begin refurbishing its largest stores in Europe next year, in a two-year, EUR1.5 billion project aimed at reviving the retailer’s core business. This also helped push the Stoxx Europe 600 retail index up 2.8%.

Meanwhile, shares in French retail giant Carrefour rose 6%, after it said it will begin refurbishing its largest stores in Europe next year, in a two-year, EUR1.5 billion project aimed at reviving the retailer’s core business. This also helped push the Stoxx Europe 600 retail index up 2.8%.

On Wall Street Thursday, technology companies boosted U.S. blue-chip stocks as confidence mounted that the economy would avoid a double-dip recession.

On Wall Street Thursday, technology companies boosted U.S. blue-chip stocks as confidence mounted that the economy would avoid a double-dip recession.

Overall, the Dow Jones Industrial Average closed up 0.2% at 10,594.83, while the Nasdaq Composite edged up 0.1% to 2303.25. The Standard & Poor’s 500-stock index slipped 0.1% to 1124.66. Among the technology stocks, Hewlett-Packard rose 1.8% while Cisco Systems gained 1.6% and Intel added 1.3%.

Overall, the Dow Jones Industrial Average closed up 0.2% at 10,594.83, while the Nasdaq Composite edged up 0.1% to 2303.25. The Standard & Poor’s 500-stock index slipped 0.1% to 1124.66. Among the technology stocks, Hewlett-Packard rose 1.8% while Cisco Systems gained 1.6% and Intel added 1.3%.

While all the benchmark indexes have surged this month, the Nasdaq has outpaced its peers. The measure has climbed almost 9% since the start of September as fears of a double-dip recession have relaxed. The DJIA has gained 5.8% this month, while the S&P 500 has added 7.2%.

While all the benchmark indexes have surged this month, the Nasdaq has outpaced its peers. The measure has climbed almost 9% since the start of September as fears of a double-dip recession have relaxed. The DJIA has gained 5.8% this month, while the S&P 500 has added 7.2%.

The modest rise on Wall Street helped Asian stocks early Friday, although volumes in Korea and Japan have been limited ahead of holidays next week.

The modest rise on Wall Street helped Asian stocks early Friday, although volumes in Korea and Japan have been limited ahead of holidays next week.

Japan’s Nikkei Stock Average was up 1.2%, while South Korea’s Kospi Composite rose 0.8%. China’s Shanghai Composite Index erased earlier gains and closed down 0.2%, while Hong Kong’s Hang Seng Index remained steady, up around 1.1%.

Japan’s Nikkei Stock Average was up 1.2%, while South Korea’s Kospi Composite rose 0.8%. China’s Shanghai Composite Index erased earlier gains and closed down 0.2%, while Hong Kong’s Hang Seng Index remained steady, up around 1.1%.

Japanese exporters continued to rise as the dollar remained well supported around Y85.80 after Tokyo’s market intervention earlier this week. Gains were broad-based, with 30 of the 33 Topix subindexes higher, although investors were not trading actively before Japanese public holidays on Monday and Thursday.

Japanese exporters continued to rise as the dollar remained well supported around Y85.80 after Tokyo’s market intervention earlier this week. Gains were broad-based, with 30 of the 33 Topix subindexes higher, although investors were not trading actively before Japanese public holidays on Monday and Thursday.

In the foreign exchange markets, the euro and sterling both gained ground early Friday, with the positive tone on the equity markets adding to the pro-risk tone.

In the foreign exchange markets, the euro and sterling both gained ground early Friday, with the positive tone on the equity markets adding to the pro-risk tone.

At 0825 GMT, the euro was trading at $1.3143, up from $1.3078 late Thursday in New York, while sterling traded at $1.5709, up from $1.5622. Elsewhere, the dollar was at Y85.86, largely unchanged.

At 0825 GMT, the euro was trading at $1.3143, up from $1.3078 late Thursday in New York, while sterling traded at $1.5709, up from $1.5622. Elsewhere, the dollar was at Y85.86, largely unchanged.

Among other assets, spot gold was at $1280.15 a troy ounce, not far off the new record high at $1282.75, while the October Nymex crude oil futures contract was up 42 cents at $74.99 per barrel.

Among other assets, spot gold was at $1280.15 a troy ounce, not far off the new record high at $1282.75, while the October Nymex crude oil futures contract was up 42 cents at $74.99 per barrel.