Tech shares were among the day's biggest gainers, with an S&P sector index surging 2.8 percent on the strength of Apple Inc. Shares of Apple climbed 5.8 percent to $561.28, leading the Nasdaq to its biggest one-day percentage gain since December 2011.
Facebook Inc, the social networking giant that fell short of lofty expectations last week, fared no better on Monday. Facebook's stock sank 11 percent in its second day of trading, dropping to $34.03, well below its $38 issue price. Read U.S. stock market closed may 21 2012
European and U.S equity markets rebounded overnight with market participants finding solace in global leaders unwavering commitment to keep Greece in the Euro-zone. Over the weekend the G8 leaders confirmed their support for a united Euro region, while opinion polls suggest the pro-bailout New Democracy Party is gaining support ahead of next month's elections in Greece.
We've seen a succession of negative themes lead to a sustained period of weakness across the risk spectrum but moderate optimism began to feed through with investors also encouraged by Chinese Premier Wen Jiabao who over the weekend who indicated a need for stimulus in an effort to sustain strong growth in the region. After a series of largely uninspiring data points, there appears to be a significant shift in language from Premier Jiabao which indicates a gradual unwinding of policy initiatives designed to keep inflationary pressures under control.
While we may see a period of relative stability across global markets, it's clear that without a solution to Greece's political instability the balance of risk will continue to err on the side of caution. With plenty of dead air to fill between now and the next Greek elections on June 19, without intervention, it's only a matter of time before markets take a deeper south-bound turn. Meanwhile, Speaking in Tokyo, Fed Atlanta President Dennis Lockhart expressed the need to keep policy easing measures such as quantitative easing in the Fed's took kit, stating 'QE3 will work under the right circumstances. But I don't believe such circumstances prevail at this time.'
It was a relatively solid night across risk currencies with the Euro and commodity currencies rallying in unison. The Euro has managed to squeeze out gains with a break to the upside of $US1.28-figure while the Aussie rebounded to highs of 99.19 US cents. In essence, we're seeing moderate optimism lead to a short squeeze across risk currencies with further upside momentum reliant on more positive news from the source, Europe.
Asian stock markets are trading notably higher on Tuesday with investors indulging in fairly heavy buying amid slightly easing worries about the financial situation in Europe ahead of the European Union Summit and on the Chinese government's pledge to bolster its economy. Read asian stock market may 22 2012
Bargain hunting after recent weakness is also contributing to an extent for the upmove in some of the markets in the region.
Energy stocks are leading the pack of gainers in the Australian market. Several stocks from industrial and financial sectors are also trading notably higher. Mining, property trusts and consumer discretionary stocks are finding good support.
The benchmark S&P/ASX 200 index, which rose to 4,111.2, is currently trading at 4,102, up 28.4 points or 0.7 percent from its previous close. The broader All Ordinaries index is up 29.6 points or 0.7 percent at 4.154, nearly 10 points off the day's high of 4,163.3.
For the latest updates on the stock market, PRESS CTR + D or visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment