International markets roundup

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This was published 9 years ago

International markets roundup

A roundup of trading on major world markets:

NEW YORK - US stocks have bolted higher following a series of mostly strong earnings reports from Dow members Caterpillar, 3M and others.

The Dow Jones Industrial Average shot up 216.58 points (1.32 per cent) to 16,677.90 on Thursday.

The broad-based S&P 500 gained 23.71 (1.23 per cent) at 1,950.82, while the tech-rich Nasdaq Composite Index soared 69.95 (1.60 per cent) to 4,452.79.

"The industrials are leading the market much higher," said Peter Cardillo, chief market economist at Rockwell Global Capital.

"The economic news was somewhat mixed. But we did have very good earnings."

Industrial heavyweight Caterpillar jumped 5.0 per cent after third-quarter net income rose eight per cent to $US1.02 billion ($A1.10 billion) as company cost-cutting measures and restructuring offset sluggish economic conditions. Earnings of $US1.63 per share blew by the consensus estimate of $US1.36.

3M's profits gained six per cent to $US1.3 billion as the industrial and consumer materials company notched earnings per share of $US1.98, two cents above analyst estimates. Shares soared 4.4 per cent.

General Motors dipped 1.2 per cent as third-quarter net income fell 14.3 per cent to $US1.47 billion on weak performance in Europe and South America. The results translated into per share earnings of 97 cents, two cents above analyst forecasts.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.28 per cent from 2.23 per cent on Wednesday, while the 30-year advanced to 3.05 per cent from 3.00 per cent. Prices and yields move inversely.

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LONDON - European stock markets have closed higher after choppy trading, as data showing slightly improved business activity in the eurozone lifted sentiments.

London's benchmark FTSE 100 index climbed 0.30 per cent to end Thursday at 6,419.15 points.

In Paris, the CAC 40 added 1.28 per cent to close at 4,157.68 points, while Frankfurt's DAX index gained 1.20 per cent to 9,047.31 points.

"There's certainly been no shortage of volatility," said Tony Cross, an analyst at Trustnet Direct.

"It all started with an air of disappointment following Wall Street's finish on Wednesday but some shreds of hope from the eurozone were sufficient to lift sentiments shortly after the open."

A key survey showed business activity in the 18-nation eurozone strengthened slightly in October, but overall the economy remained weak with new orders low and pressure on prices.

HONG KONG - Asian markets have slipped on profit-taking following the previous day's hefty gains while there was little positive reaction after a closely watched indicator showed a slight pick-up in Chinese manufacturing activity.

The US dollar edged higher following a surprising rise in US inflation while the euro edged up after falling on speculation that the European Central Bank will widen its bond-buying program.

Tokyo on Thursday fell 0.37 per cent, or 56.81 points to 15,138.96, while Seoul lost 0.27 per cent, or 5.32 points, to end at 1,931.65 and Sydney edging marginally lower, easing 2.77 points to 5,383.1.

Shanghai sank 1.04 per cent, or 24.14 points, to 2,302.42 and Hong Kong lost 0.30 per cent, or 70.79 points, to close at 23,333.18.

Regional markets have enjoyed a mostly positive run since Monday as concerns eased over the global economy that fuelled a sell-off last week.

Shares opened in negative territory as traders cashed in recent gains. Buying sentiment was lifted briefly by a rise in HSBC's preliminary purchasing managers index of manufacturing activity, but it was unable to take shares out of the red.

WELLINGTON - New Zealand shares have climbed to a new record close, led by Restaurant Brands New Zealand after the fast-food operator boosted its annual earnings guidance.

The NZX 50 Index rose 13.126 points, or 0.2 per cent, to 5292.825 on Thursday.

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