European, US stock markets rise as quarterly results flow in

GMT 16:02 2014 Tuesday ,28 October

Arab Today, arab today European, US stock markets rise as quarterly results flow in

London Stock Exchange (LSE)
London - AFP

European stock markets rose and Wall Street opened firmly on Tuesday as company quarterly results got under way and investors awaited a key meeting of the US Federal Reserve.
Wall Street remained optimistic despite an unexpected drop in orders for durable goods. The Dow rose 1.23 percent in early trading and the Nasdaq 0.43 percent.
London's benchmark FTSE 100 index advanced 0.64 percent to stand at 6,397.69 points in midday deals.
Frankfurt's DAX 30 rallied 1.44 percent to 9,030.77 points and in Paris the CAC 40 climbed 0.52 percent to stand at 4,117.97 compared with Monday's closing value.
Madrid surged 1.75 percent and Milan soared 1.89 percent.
The euro rose against the dollar and British pound.
The ruble fell to new record low levels against the euro and dollar, and was at 54.04 to the euro and 42.50 to the dollar.
In Stockholm, the Swedish central bank set a zero base interest rate, deciding to cut its key rate by a quarter of a percentage point in a drive to push up exceptionally low inflation.
Europe's main stock markets had fallen sharply on Monday as negative German business data overpowered broad relief after the European Central Bank gave passing grades to a comfortable majority of eurozone banks subjected to stress tests.
Asian equity markets ended mixed on Tuesday ahead of the US Federal Reserve's next policy meeting, which will be scrutinised for an idea of what its plans are for interest rates in the world's biggest economy.
In foreign exchange deals, the euro remained stable against the dollar, weakening slightly to $1.2695 from $1.2698 late in New York on Monday.
The European single currency edged up to 78.81 British pence from 78.78 pence.
The British pound fell back to $1.6108 from $1.6117 on Monday.
"Until we see the outcome of the Fed meeting on Wednesday, it may be that the dollar loses some ground against the pound and euro over the next few days," said traders Currencies Direct in a note to clients.
"Underpinning the (recent) dollar rally, has been the expectation that the Fed, after winding down its asset purchase scheme this month, will begin to raise rates in 2015. However, talk yesterday around the markets was beginning to raise doubt that a rate rise will happen at all in 2015," they noted.
On the London Bullion Market, the price of gold dipped to $1,227.98 an ounce from $1,228.75 an ounce on Monday.
- Eyes on banks, drugmakers -
Shares in Standard Chartered dived 7.89 percent to after the emerging markets bank issued a profit warning and said it would "remain watchful" in India and China after a sharp fall in quarterly pre-tax profits.
Lloyds Banking Group meanwhile gave up 2.44 percent to 73.50 pence after the British state-rescued lender said it aims to shed 9,000 jobs and close 150 branches over the next three years to cut costs.
Alongside news that it had improved profits, LBG said it would cut about one-tenth of its workforce as customers switch to banking online.
"The banks are back in investors' bad books, after updates from Standard Chartered and Lloyds spooked traders," said David Madden, market analyst at IG traders.
BP shares rose 1.09 percent to 436.95 pence despite the energy major revealing a slump in profits.
Shares in French drugmaker Sanofi plunged 10.38 percent to 74.74 euros because net profit slipped in the third quarter, the group was cautious about the US market for diabetes treatments, and investors are concerned about criticism of the chief executive for living in Boston.
Novartis saw its stock price shoot up 1.86 percent to 87.53 Swiss francs, outperforming the  Swiss stock exchange, as the pharmaceuticals giant said strong sales of new products had helped push its net profit up 45 percent in the third quarter, despite competition from copycat generic drugs.

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