Asian stocks advance on positive earnings, dataREUTERS, Fri Oct 24, 2014 07:48 WIB - Asian shares climbed on Friday after upbeat U.S. corporate earnings, solid U.S....
Japan's Nikkei share average .N225 rose 1.4 percent while MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.1 percent.
Results from Caterpillar Inc (CAT.N) and 3M Co (MMM.N) reassured investors that companies with large overseas revenue streams could deliver solid profits, despite concerns about global economic growth.
The markets ignored positive earnings earlier this month, when the world's share prices hit multi-month lows, overwhelmed by fears that sluggishness in Europe and Asia could deal a severe blow to the U.S. economy as well.
But a steady flow of solid earnings helped to ease many such concerns for now.
With 177 of the S&P 500 companies having posted third-quarter results, 69.5 percent have beaten expectations, better than the 67 percent beat rate over the past four quarters, and higher than the 20-year average of 63 percent, Thomson Reuters data showed.
"The markets had fallen on sentiment rather than on facts. And the sentiment is coming back," said Soichiro Monji, chief strategist at Daiwa SB Investments.
New claims for U.S. unemployment benefits also held below 300,000 for a sixth straight week last week.
In the euro zone a survey showed businesses performed much better than anyone expected this month, even though it also pointed to strong deflationary pressure in the region.
Wall Street shares rose on Thursday as a result, with S&P 500 index .SPX hitting two-week highs, although their gains were pared back in late session on news of the first Ebola case seen in New York.
U.S. debt prices fell, lifting their yields. The 10-year notes yield hit a two-week high of 2.300 percent on Thursday and last stood at 2.277 percent.
The U.S. dollar also rose, reaching as high as 108.36 yen, its highest level in two weeks and up about 3.0 percent from this month's low.
The euro drew some support from the surprise strength in the euro zone data, but was still near a two-week low of $1.2614 hit on Thursday. It last stood at $1.2649.
Oil prices rebounded on news Saudi Arabia cut supply to the market in September, even though its overall production grew month on month, and on strong economic data from Europe and China.
Brent crude oil traded at $86.68 per barrel LCOc1, after gaining nearly 3 percent on Thursday.
Gold poised for weekly loss on strong U.S. data, dollarREUTERS, Fri Oct 24, 2014 07:31 WIB - Gold dipped for a third session on Friday and was headed for a weekly loss as a firmer...
Spot gold eased 0.1 percent to $1,230.48 an ounce by 0020 GMT, after slipping over 1 percent in the previous two sessions.
The metal is headed for a weekly loss of 0.6 percent - its first drop in three weeks - as the dollar gained after two weekly declines in a row.
Palladium was the best performer among precious metals for the week, with a near 4 percent jump.
The dollar rallied on Thursday as investors plowed cash back into riskier asset classes, underpinned by promising U.S. data and stronger-than-expected manufacturing reports in Europe and China.
A strong greenback makes gold more expensive for holders of other currencies.
Data on Thursday showed that new claims for U.S. unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labour market was shrugging off jitters over a slowing global economy.
Euro zone businesses performed much better than forecasters expected this month and China's vast factory sector grew a shade faster, but U.S. manufacturing activity sputtered to its slowest since July, underscoring the uneven nature of the post-crisis global economy.
The data, however, still managed to calm investor nerves after fears of a global slowdown prompted a sharp sell-off in global equities and the dollar, dimming gold's appeal as a safe-haven.
In news from the miners, Peruvian precious metals miner Hochschild posted a decline in third-quarter production, hit by lower grades at its Pallancata mine and a
two-week strike at its Arcata asset, but said it was still on track to reach its annual target.
African Barrick Gold Plc tightened its costs target for the full year as it increased output while also cutting jobs to beat the sharp drop in gold prices.
The yen languished at two-week lows against the dollar early on Friday, having come under renewed pressure overnight after an encouraging rally on Wall Street dampened demand for the safe haven currency.
0130 China House prices Sep
0600 Germany GfK consumer sentiment Nov
0830 Britain Preliminary GDP Q3
1400 U.S. New home sales Sep
Yen stumbles as strong US earnings revive risk tradesREUTERS, Fri Oct 24, 2014 06:26 WIB - The yen languished at two-week lows against the dollar early on Friday, having come...
Upbeat earnings from the likes of Caterpillar (CAT.N) and 3M (MMM.N) helped drive U.S. stocks .SPX to a two-week high, which in turn lifted U.S. Treasury yields.
Higher yields usually have the effect of boosting the allure of the greenback against the yen and it duly climbed as high as 108.36 yen, gaining more than 1 percent on Thursday. It last traded at 108.19.
"Absent a major relapse into a risk-off mode, the USD is best positioned to gain against the low yielders such as JPY, EUR and CHF going into the FOMC meeting next week," analysts at BNP Paribas wrote in a note to clients.
"That said, we remain cautious about adding fresh USD longs at this stage, awaiting a stronger and more sustained recovery in Treasury yields."
The yen also lost ground against many of its global peers and some traders said this was because of a Wall Street Journal report that sparked talk of more easing from the Bank of Japan.
The WSJ article, citing people familiar with the central bank's thinking, said the BOJ now saw "a much bigger possibility of inflation slipping below 1 percent" due to falling oil prices.
The euro fetched 136.88 yen, having briefly popped above 137.00 for the first time since Oct. 10. The Australian dollar came within a whisker of 95.00 yen, reaching a high last seen on Oct. 9.
Reports that a New York hospital was running Ebola tests on a healthcare worker took a bit of gloss off Wall Street late in New York and developments there will be closely watched by investors in Asia, traders said.
Setting off fresh fears about the spread of the virus, a physician with Doctors without Borders, who recently returned from West Africa, is being tested for Ebola at a New York City hospital.
Also on the defensive, the euro dipped to a two-week low of $1.2614 but managed to reverse the fall to end flat in New York at $1.2647, where it currently stood.
Helping keep euro bears tethered, a closely watched survey showed Germany's private sector grew faster in October as manufacturing rebounded, suggesting Europe's largest economy may be gaining momentum in the fourth quarter.
The stand out currency overnight was the New Zealand dollar, which took a hammering in the wake of soft inflation data at home. The numbers were seen giving the Reserve Bank of New Zealand room to delay its next rate hike further into next year.
The kiwi dollar touched a near two-week low of $0.7795, before steadying just above 78 U.S. cents.
In Asia on Friday, China house prices due around 0130 GMT will be closely watched given ongoing concerns about the property market.
"Property poses the single biggest risk to China at the moment and investors will be searching for any signs of stabilization. Further deterioration in China's property prices will be a real concern," said Stan Shamu, market strategist at IG.
Wall St. gains on industrial earnings but ends off highsREUTERS, Fri Oct 24, 2014 04:12 WIB - Earnings from Caterpillar and 3M drove Wall Street higher on Thursday but stocks pared...
The day's advance put the S&P 500 at its highest level in two weeks as results from industrial bellwethers reassured investors that corporations can generate strong profits despite concerns about global growth.
Still, the S&P finished about 0.6 percent below its intraday high after news that a healthcare worker who returned to the United States from West Africa had a fever and gastrointestinal symptoms.
"The headline risk caused sellers to be more active. That subsided after about 20 minutes and the real impact won't be known until tomorrow morning," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. "It threw a little scare into the market."
Caterpillar Inc's (CAT.N) profit beat forecasts and the machinery maker raised its full-year profit forecast. Shares of the Dow component jumped 5 percent to $99.27.
3M Co (MMM.N) added 4.4 percent to $145.05. 3M's results were driven by U.S. sales and its CEO called the U.S. economy "improved."
The S&P industrial sector .SPLRCI climbed 2.2 percent, the day's biggest advancing sector.
"If we’re looking at headwinds like currency and slowing global growth, seeing multinationals like Caterpillar and 3M post solid beats gives us confidence that economic growth is holding on and probably better than the market is currently expecting," said Phil Orlando, chief equity market strategist at Federated Investors in New York.
The Dow Jones industrial average .DJI rose 216.58 points, or 1.32 percent, to 16,677.9, the S&P 500 .SPX gained 23.71 points, or 1.23 percent, to 1,950.82 and the Nasdaq Composite .IXIC added 69.95 points, or 1.6 percent, to 4,452.79.
On the downside, AT&T Inc (T.N) fell 2.4 percent to $33.66, a day after reporting weaker-than-expected revenue growth.
Yelp Inc (YELP.N) slumped 18.6 percent to $57.17 in heavy trading a day after its revenue outlook disappointed.
After the close, Amazon.com Inc's (AMZN.O) sales projections for the holiday quarter disappointed and results missed targets, sending shares 9 percent lower.
Despite those disappointments, this earnings season has largely been positive for companies. With more than a third of the S&P 500's results in, 69.5 percent have exceeded profit expectations, according to Thomson Reuters data, above the long-term average of 63 percent.
New claims for U.S. unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labor market was shrugging off jitters over a slowing global economy.
NYSE advancers outnumbered decliners 2,391 to 700, for a 3.42-to-1 ratio on the upside; on the Nasdaq, 1,962 issues rose and 731 fell, for a 2.68-to-1 ratio.
The S&P 500 index posted 40 new 52-week highs and 2 new lows; the Nasdaq Composite showed 57 new highs and 39 new lows.
About 7.1 billion shares changed hands on U.S. exchanges, below the 8.2 billion October average, according to BATS Global Markets.
Gold drops as equities surge and physical demand wanesREUTERS, Fri Oct 24, 2014 01:25 WIB - Gold fell around 1 percent on Thursday as stronger-than-expected economic data and...
Bullion posted its second straightly daily loss after data showed new claims for U.S. unemployment benefits held below 300,000 for a sixth straight week last week, suggesting the labor market was shrugging off jitters over growth.
The S&P 500 index soared more than 1.5 percent in a broad rally, as strong results from industrial bellwethers reassured investors that corporations continue to fare well despite concerns about global economic growth.
However, outflows from gold-backed exchange-traded funds suggested investment appetite for bullion was softening, analysts said.
"We're still having outflows from physically backed gold funds," Natixis analyst Bernard Dahdah said. "Western investors still aren't very excited about holding gold."
Spot gold was down 0.9 percent at $1,229.12 an ounce by 2:08 p.m. EDT (1808 GMT), having earlier hit a one-week low of $1,226.17.
U.S. COMEX gold futures for December delivery settled down $16.40 an ounce at $1,229.10, with volume in line with its 30-day average, preliminary Reuters data shows.
Holdings of the world's largest gold-backed exchange-traded fund, New York's SPDR Gold Trust, fell 0.3 percent on Wednesday to 749.87 tonnes, the lowest since late 2008. Outflows from the fund this week have now topped 11 tonnes, the most of any week since mid-September.
Global stock markets are now well above last week's lows on worries about world economic growth. Gold rallied to a six-week high at $1,255.20 on Tuesday before stock markets turned around.
Physical buying could also slow after the arrival of the Diwali festival in India, a major gold-buying event, analysts said.
Precious metals house MKS said in a note that physical interest from China was short-lived and noted the lack of follow-through buying. "The recent physical support we have been seeing from India has now waned as they celebrate during their festival season," MKS said.
Silver rose 0.6 percent to $17.17 an ounce, while platinum was down 0.5 percent at $1,251.24 an ounce and palladium climbed 1 percent to $775.40 an ounce.
Full production at Anglo American Platinum's strike-hit mines in South Africa resumed a month ahead of schedule in September as operations bounced back from a five-month strike, the company said on Thursday.