US MARKET EDGES HIGHER ON BETTER THAN EXPECTED HOUSING DATA
DATE: 27/04/2012
The US markets extended gains on Thursday, as pending home sales increased more than forecast and technology companies rallied on better-than-estimated earnings. After a tepid start, the markets picked up steam after the National Association of Realtors reported its index of pending home sales climbed 4.1% in March to a two-year high. Contract signings to sell existing homes reached a 23-month high in March in an indication of a rebound in activity in the housing market, a trade group reported. The National Association of Realtors’ pending-home-sales index rose 4.1% to 101.4 in March. February’s gauge was upwardly revised to 97.4 from an initially reported 96.5. March pending home sales were up 12.8% from year-ago levels. However, the number of Americans who applied for jobless benefits remained elevated for the third straight week, suggesting potential weakening in the US labor market. Jobless claims fell by 1,000 to a seasonally adjusted 388,000 in the week ended April 21. Claims from two weeks ago were revised up to 389,000 - the highest level since the first week of January - from an original reading of 386,000.
In Europe, Standard & Poor's Ratings Services lowered Spain's long-term sovereign credit rating by two notches to BBB+ from A with a negative outlook. The ratings agency stated that downgrade reflects concerns about mounting risks of the country's government debt against the backdrop of a shrinking economy as well as increased likelihood of additional support for the banking sector. Besides, euro-zone economic confidence fell to 92.8 in April from a revised 94.5 in March, driven mainly by weakening confidence in the industry and services sectors, survey results from the European Commission showed. The industrial confidence deteriorated to -9 in April from -7.1 in March. Services confidence dropped to -2.4 in April from -0.3 in March.
The Dow Jones Industrial Average closed higher by 113.90 points, or 0.87 percent, at 13,204.60. The S&P 500 gain 9.29 points, or 0.67 percent, at 1,399.98, while the Nasdaq was up by 20.98 points, or 0.69 percent, at 3,050.61.
Indian ADRs closed mostly in green on Thursday; Infosys Technologies was up 0.75%, Tata Communication was up 0.40% and ICICI Bank was up 0.20%. On the other hand, Sterlite Industries was down 0.02% and MTNL was down 0.01%.
In Europe, Standard & Poor's Ratings Services lowered Spain's long-term sovereign credit rating by two notches to BBB+ from A with a negative outlook. The ratings agency stated that downgrade reflects concerns about mounting risks of the country's government debt against the backdrop of a shrinking economy as well as increased likelihood of additional support for the banking sector. Besides, euro-zone economic confidence fell to 92.8 in April from a revised 94.5 in March, driven mainly by weakening confidence in the industry and services sectors, survey results from the European Commission showed. The industrial confidence deteriorated to -9 in April from -7.1 in March. Services confidence dropped to -2.4 in April from -0.3 in March.
The Dow Jones Industrial Average closed higher by 113.90 points, or 0.87 percent, at 13,204.60. The S&P 500 gain 9.29 points, or 0.67 percent, at 1,399.98, while the Nasdaq was up by 20.98 points, or 0.69 percent, at 3,050.61.
Indian ADRs closed mostly in green on Thursday; Infosys Technologies was up 0.75%, Tata Communication was up 0.40% and ICICI Bank was up 0.20%. On the other hand, Sterlite Industries was down 0.02% and MTNL was down 0.01%.
POWERED BY: COMMODITY INSIGHTS
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