Wall St Closing Bell
After an upbeat report on services industries and more takeover news Wall Street stocks rallied for a fourth consecutive day but the world’s most-watched stock indices stumbled at the end of trade.
The Institute for Supply Management said its services index for February rose to 53 from 50.5 in January. Economists had forecast a rise to 51. Growth in services industries is seen as crucial for an economic rebound.
A steady stream of corporate deals also gave more support to the market, as was the case earlier in the week. In the latest deal, private equity firm Elliott Associates offered to buy the 91.5 per cent of software maker Novell Inc that it doesn’t already own.
Acquisitions signal that businesses are confident in the economy and see some companies as undervalued.
Separately, a report on the labor market didn’t come in below expectations. Payroll company ADP said employers cut 20,000 jobs last month, matching forecasts from economists.
The Labor Department is expected to report on Friday that the unemployment rate edged up to 9.8 per cent last month and that employers cut 50,000 jobs.
Concern about the economy eased after debt-burdened Greece announced plans to trim spending, as expected. The plan creates $US6.5 billion ($A7.2 billion) in savings. Investors have been trying to determine whether problems there will spill over into other economies.
In mid-afternoon trading, the Dow Jones industrial average was up 7.41 points, or 0.07 per cent, to 10,413.39.
The broader Standard & Poor’s 500 index had added 2.09 points, or 0.19 per cent, to 1120.4 and the Nasdaq composite index was up 3.03 points, or 0.13 per cent, to 2283.82.
European stock markets were buoyed by positive US economic data and the latest Greek austerity package, which received a positive European Union response.
Dealers said news that the massive US services sector grew faster than expected in February and that the US private sector shed the smallest number of jobs in two years in the same month, boosted confidence.
Remarks by EU officials on Greece’s latest measures to trim its public deficit back to eurozone norms were taken positively, suggesting European powerhouse Germany will now agree to some form of EU aid for Athens.
The news leads combined helped push Wall Street higher, setting the example for the European markets to follow in the afternoon.
In London, the main FTSE 100 index closed 49.15 points higher, up 0.9 per cent, to 5533.21 points.
Germany’s DAX gained 41.32 points, or 0.72 per cent, to 5,817.88 points. In France, the CAC 40 gained 30.6 points, or 0.8 per cent, to 3842.52 points.
Commodities
Oil prices rose above $US80 a barrel as the US dollar weakened and refineries increased production ahead of the traditionally busy summer driving season.
Benchmark crude for April delivery finished $US1.19 higher when markets settled after the close of trade, at $US80.87 a barrel on the New York Mercantile Exchange.
Prices increased early in the day after Greece announced measures to tame its deficit.
Oil prices rallied despite an Energy Information Administration report that said US oil and gasoline stockpiles grew more than expected.
Gold for April delivery gained $US5.90 to settle at $US1143.30 an ounce.
Silver for May delivery gained 26.5 US cents to $US17.329 an ounce. May copper rose 2.35 US cents to $US3.435 per pound.
Global Market Indexes
Americas Price Change (%) 1 Year % Last Updated Toronto Composite 11826.68 Mar 03, 3:00pm Mexican Bolsa IPC Index 32322.13 Mar 03, 3:00pm Brazil Bovespa Index 67667.21 Mar 03, 3:00pm Argentina Merval Index 2291.39 Mar 03, 3:00pm Chile IPSA Index 3706.53 Mar 03, 3:00pm
Asian Pacific Price Change (%) 1 Year % Last Updated Nikkei 225 Index 10253.14 Mar 03, 3:00pm ASX All Ordinaries 4743.80 Mar 03, 3:00pm Seoul Composite 1622.44 Mar 03, 3:00pm Hong Kong Hang Seng 20876.79 Mar 03, 3:00pm Shanghai 3097.00 Mar 03, 3:00pm Taiwan Weighted 7629.52 Mar 03, 3:00pm Singapore Straits Times 2782.79 Mar 03, 3:00pm Bombay Sensex Index 17000.01 Mar 03, 3:00pm Jakarta Composite 2567.09 Mar 03, 3:00pm Kuala Lumpur Composite 1286.10 Mar 03, 3:00pm PSE Composite 3069.29 Mar 03, 3:00pm Sri Lanka All Share 3774.03 Mar 03, 3:00pm
Europe Price Change (%) 1 Year % Last Updated FTSE 100 Index 5533.21 Mar 03, 3:00pm Paris CAC 40 3842.52 Mar 03, 3:00pm Frankfurt Index 5817.88 Mar 03, 3:00pm Milan BCI General 15743.00 Mar 02, 5:30pm Belgium 20 Index 2592.56 Mar 03, 3:00pm Swiss Market Index 6813.16 Mar 03, 3:00pm OSE Norway All Share 410.26 Mar 03, 3:00pm ATX Vienna 2456.98 Mar 03, 3:00pm Amsterdam Total Return General 331.86 Mar 03, 3:00pm Madrid General 1107.56 Mar 03, 3:00pm Stockholm General Index 310.24 Mar 03, 3:00pm
Africa/Middle East Price Change (%) 1 Year % Last Updated Israel TA 100 Index 1125.01 Mar 03, 10:45am TEL-TECH INDEX 315.04 Mar 03, 10:45am TEL-TECH-15 INDEX 268.51 Mar 03, 10:45am
Shayne Heffernan www.livetradingnews.com AAP, with BusinessDay
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