Home' Trinidad and Tobago Guardian : May 17th 2015 Contents European stock markets tracked their US
counterparts higher Friday, with sentiment
supported by comments from European Central
Bank President Mario Draghi that the bank
will "implement in full" its bond-buying pro-
KEEPING SCORE: In Europe, Germany s
DAX fell 0.2 per cent to 11,533 while the CAC-
40 in France rose 0.1 per cent to 5,035. The
FTSE 100 index of leading British shares was
up 0.2 per cent at 6,989. US stocks were
poised for a steady opening with Dow futures
and the broader S&P 500 futures up 0.1 per
DRAGHI DRIVER: Traders have been
spooked by recent volatility in the bond market,
but reassurances from the US and European
central banks appear to have somewhat
assuaged those fears.
On Thursday, Draghi said the ECB s 1.1 tril-
lion-euro (US$1.2 trillion) bond-buying pro-
gram "will stay in place as long as needed for
its objective to be fully achieved on a truly
sustained basis." There has been some spec-
ulation that the ECB may bring an end to its programme earlier than anticipated in the
wake of solid economic growth figures.
ANALYST TAKE: "Sentiment has been
soothed by Draghi s comments," said Fawad
Razaqzada, an analyst at Forex.com.
CHINA WEAKNESS: While the 19-coun-
try eurozone has been showing signs of healing,
worries over China continue to weigh on sen-
timent. Data this week showed fixed asset
investment growing at its slowest pace in 15
years, in keeping with government policy aimed
at shifting away from heavy reliance on such
spending to drive growth, but worrying for
investors who fear a too sharp slowdown.
ASIA SCORECARD: Japan s Nikkei 225
gained 0.8 per cent to 19,732.92 and Hong
Kong s Hang Seng gained 2 per cent to
27,822.28. Australia s S&P/ASX 200 rose 0.7
per cent to 5,735.50. South Korea s Kospi fell
0.7 per cent to 2,106.50 after the Bank of
Korea kept its benchmark interest rate
unchanged. The Shanghai Composite index
dropped 1.6 per cent to 4,308.69. Markets in
Southeast Asia mostly rose.
CURRENCIES: The euro was down 0.3
per cent at US$1.1367 while the dollar rose
0.5 per cent to 119.85 yen.
MAY 17 • 2015 www.guardian.co.tt SUNDAY BUSINESS GUARDIAN
US stock indexes spent
Friday mostly drifting
between tiny gains and
losses, but the small
moves were enough to
nudge the Standard &
Poor s 500 index to its
second record high in
The Dow Jones industrial average also
notched a gain for the second day in a row.
The Nasdaq bucked the trend, closing slightly
Utilities stocks were among the biggest gain-
ers as investors weighed a mix of US economic
data and corporate earnings news. The price
of US oil fell slightly, ending a second week
in a row nearly flat just under US$60 a bar-
rel.Despite the latest milestone, it was a mostly
listless day on Wall Street, as traders appeared
content to hold off on major moves following
Thursday s big rally.
"Often, in fact, there s a bit of selling pressure
in these situations as many people want to
book some profits after these days," said JJ
Kinahan, TD Ameritrade s chief strategist.
The Dow rose 20.32 points, or 0.1 per cent,
to 18,272.56. That s within 16 points of its
record set on March 2.
The S&P 500 index gained 1.63 points, or
0.1 per cent, to 2,122.73. The Nasdaq slipped
2.50 points, or 0.1 per cent, to 5,048.29. The
three indexes are up for the month and year.
Trading got off to a sluggish start early
Friday and remained mostly muted, with the
major indexes hovering near their prior-day
Separate reports on Friday offered a mixed
assessment of US manufacturing. The Federal
Reserve said factory activity in New York
increased slightly in May, suggesting that man-
ufacturers are beginning to adapt to the chal-
lenges caused by a stronger dollar, lower oil
prices and restrained consumer spending.
Meanwhile, US industrial output fell for the
fifth straight month in April. The trend suggests
that weakness in manufacturing and mining
are weighing heavily on the economy.
Other reports this week have also shown
diverging trends for the US economy. The
Commerce Department s US retail sales report
for April fell short of Wall Street s forecasts.
But the latest figures on applications for unem-
ployment aid and inflation were more encour-
"This week, on balance, the economic
reports have been a little soggy," said Bob Doll,
chief equity strategist at Nuveen Asset Man-
agement. "We re muddling through and the
market is just fine with that."
Investors are gauging how well the US econ-
omy is doing as they try to anticipate when
the Federal Reserve will raise short-term inter-
est rates for the first time in more than six
years. Many economists anticipate the central
bank won t increase rates before September.
Seven of the 10 sectors in the S&P 500 index
rose, led by utilities stocks. The sector remains
down 6.7 per cent this year. Financials fared
the worst. The sector is down 0.3 per cent for
Netflix was among the big gainers in the
S&P 500, climbing 4.5 per cent following a
published report saying that the video stream-
ing service is in talks to begin doing business
in China. The stock rose US$26.40 to
Companies reporting better-than-expected
quarterly earnings or outlooks were among
the big gainers Friday. Darling Ingredients
climbed US$1.55, or 11 per cent, to US$15.64.
Others failed to live up to expectations,
Dillard s reported weak first-quarter financial
results, which pulled the department store
chain s shares down 7 per cent. The stock lost
US$8.74 to US$115.46.
Keurig Green Mountain sank 8.6 per cent
as investors worried that the company s new
cold-drink machine is priced too high. The
stock lost US$8.81 to US$94.26.
Bond prices rose. The yield on the 10-year
Treasury note fell to 2.15 per cent from 2.23
per cent late Thursday.
In energy trading, benchmark US crude fell
19 cents to close at US$59.69 a barrel in New
York. US oil ended last week at US$59.39 and
the week before at US$59.15. Brent crude for
July delivery, a benchmark for international
oil used by many US refineries, fell 11 cents
to close at US$66.81 in London. The June
Brent contract expired Thursday at US$66.59.
In other futures trading on the NYMEX,
wholesale gasoline fell 0.1 cent to close at
US$2.057 a gallon. Heating oil fell 0.1 cent to
close at US$2.005 a gallon. Natural gas rose
0.8 cents to close at US$3.016 per 1,000 cubic
Precious and industrial metals futures edged
mostly higher. Gold increased 10 cents to
US$1,225.30 an ounce, silver also rose 10 cents
to US$17.56 an ounce and copper was
unchanged at US$2.92 a pound. AP
Specialist Thomas Facchine, left, calls out prices as he works on the floor of the New York
Stock Exchange Friday, May 15, 2015. US stocks are little changed in early trading a day after
the Standard & Poor's 500 index closed at an all-time high. (AP)
A man walks by an electronic stock board of a securities firm in Tokyo, Friday, May 15, 2015.
Shares in Asia were uneven on Friday as the big markets in Japan and Hong Kong got a lift
from the rebound on Wall Street, but weak data dragged Chinese shares lower. (AP)
US stock indices
hits new high
European shares gain on ECB reassurance over stimulus
Links Archive May 16th 2015 May 18th 2015 Navigation Previous Page Next Page