Asia gains in opening trade
US markets gained over 1% on earnings optimism from Travelers + PNC Fin + McDonalds. Dow Jones ended up 132 points at 10081.3, Nasdaq ended up 14.5 points at 2165.3 and S&P 500 ended up 11.5 points at 1092.9. Financial sector gained 2.9% led by regional banks as they surged 6.1%. Market shrugged weaker than expected jobless claims data, which was up 11,000 to 531,000. US advancing sectors were Financials (+2.9%), Consumer Discretionary (+1.7%), Materials (+1.40%).
Asian markets gained in the opening trade. Hang Seng, Shanghai Composite were up 1.5%, Straits Times was up 1%, Kospi was up 0.7%, Nikkei 225 was up 0.6%, Taiwan Weighted was up 0.23%. In Europe, CAC was down 1.35%, DAX was down 1.21% and FTSE was down 1%. CBOE VIX was down 6.9% at 20.69.
US results impact:
In US regional banks, PNC was up 12.6%, SunTrust was up 5.25%, Fifth Third was up 6.8%. In US financial stocks, Morgan Stanley was up 4.6% and Wells Fargo was up 4.3%. Travelers was up 7.7%; its profit more than quadrupled, company raised its full-year forecast. McDonald’s was up 2%; company topped earnings forecasts and expects same-store sales to remain positive in October.
US economic news:
Weekly jobless claims were up 11,000 at 531,000, against expected 515,000. Continuing claims were at 5.92 million, against expected 5.97 milion. Leading indicators for September increased 1%, against expected increase of 0.8%. Home prices for August fell 0.3% (MoM), against expected gain of 0.3% (MoM).
In global sugar companies, Bunge was down 3.5%, 3Q EPS was at $ 1.62/sh vs $ 1.7/sh; cuts full-year outlook to $ 3.10-$ 3.50/sh.
Commodities:
Crude Oil was down 0.2% at $ 81.2/bbl. Gold prices were down 0.6% at $ 1058.6/ounce. Silver was down 1.6% at $ 17.55/ounce.
Currencies:
USD depreciates 24 bps Vs Euro at 1.5031. Yen depreciates 65 bps Vs USD at 91.56. Korean Won depreciates 54 bps Vs USD.
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