Markets higher on good news from Europe, JapanBy TOBY STERLING
THE ASSOCIATED PRESS | January 26,2013AP PHOTO
Pedestrians look at an electronic stock board of a securities firm in Tokyo on Friday.AMSTERDAM — Positive economic news from the European Central Bank and Germany, combined with promises of more monetary easing in Japan, helped stock indexes in those countries lead most markets around the world higher Friday.
U.S. stocks rose in early trading, helped by a strong quarterly earnings report from Procter & Gamble.
In Japan, stocks were galvanized by a further drop in the value of the yen, which is expected to help big exporters like Sony. The Nikkei index surged 2.9 percent to 10,926.67, its highest close since April 30, 2010.
The European Central Bank announced Friday that banks were expected to pay back emergency loans at a faster-than-expected clip, implying that the outlook is improving or the likelihood of disaster scenarios is receding. At the World Economic Forum in Davos, Switzerland, ECB President Mario Draghi repeated the continent’s economy appears to be stabilizing and he expects recovery later this year.
Meanwhile, in Germany, business sentiment as measured by the Ifo index rose to its highest level since June, as executives said order backlogs are rising.
The Ifo report “nicely illustrates the green shoots in the German economy,” said ING senior economist Carsten Brzeski in Brussels.
“Even if the current harsh winter weather might delay the blossoming somewhat, growth should return, leaving the contraction of the fourth quarter quickly behind.”
Germany’s DAX ended Friday 1.42 percent higher at 7,857 points, the strongest performer in Europe. France’s CAC-40 was up 0.7 percent to 3,778.
Britain’s FTSE 100 rose 0.3 percent, to 6,284, after official figures showed the U.K. economy contracted 0.3 percent in the fourth quarter. The drop was worse than expected and shows the economy is struggling to make any lasting recovery.
Meanwhile, Wall Street booked early gains as Procter & Gamble said its quarterly profit doubled in the October-December period and it raised its 2013 forecasts.
The Dow Jones industrial index was 0.37 percent higher at 13,875, while the broader S&P 500 gained 0.34 percent to 1,499.8.
The weaker yen is bad for U.S. exporters, but the effect of that was offset somewhat by a rise in the euro, which was up 0.65 percent to $1.3466.
The yen’s drop was unambiguously bad for other Asian economies, as their own goods lose appeal to U.S. consumers.
South Korea’s Kospi fell 1 percent to 1,943.97. Hong Kong’s Hang Seng lost 0.1 percent to 23,580.43.
In mainland China, the Shanghai Composite Index fell 0.5 percent to 2,291.30 and the smaller Shenzhen Composite Index lost 0.2 percent at 909.52.
In Australia, the outlier, the S&P/ASX 200 rose 0.5 percent to 4,835.20.
Benchmark oil for March delivery gave back earlier gains to be 9 cents lower at $96.87 per barrel in electronic trading on the New York Mercantile Exchange.MORE IN National / World BusinessNEW YORK — Sudden twists in the price of oil and currency trading turned the stock market into a... Full Story
- Most Popular
- Most Emailed
- RICHARD'S POOR ALMANACK: In 497 BC, first Saturnalia festival celebrated in Rome, Scandinavians retain 'Yule Goat' as symbol of season, Krampus, evil side of holiday cheer, terrorizes children into better behavior, more advice from Christopher Hitchens.
- RICHARD'S POOR ALMANACK: In 533 AD, Byzantine Emperor Justinian I gets the old empire back together again routing the Vandals from Carthage; in 1890, Lakota Chief Sitting Bull is killed at his home in South Dakota; in 1970, Soviets land probe on Venus.
- DUANE CARLETON: Rutland Herald Events Editor George Nostrand interviews musician Duane Carleton, whose new CD 'A GIRL LIKE THAT' drops Thursday, Dec. 18, 2014, and will be celebrated that evening with a show at 9:30 p.m. at Killington's Pickle Barrel.
- RICHARD'S POOR ALMANACK: Sigisimund, king of Hungary, creates Order of the Dragon to defend the West against Ottoman Turks; Chong Ho escorts 300 virgins to China; J. Bruce Ismay born this day, built Titanic, gets free trip, does not go down with the ship.
- TOMORROW'S HEADLINES TODAY: Storm takes out power for 60,000 Vermonters; state gets $33M to fund pre-K education; Springfield board OKs fund to demolish blighted buildings, voters have final say; George Nostrand runs down coming events.
- RICHARD'S POOR ALMANACK: On this day in 1041, adopted son of Empress Zoe Porphyrogenita of Byzantium succeeds to throne of Eastern Roman Empire; in 1907, English medical students riot over anti-vivisection statue of little brown dog in Battersea, London.