A roundup of trading on major world markets:
NEW YORK – US stocks have powered higher, joining a surge in European markets amid rising oil prices and improved sentiment following Wednesday’s Federal Reserve meeting.
Going into the last hour of trade, the Dow Jones Industrial Average stood at 17,671.50, up 314.63 points (1.81 per cent).
The broad-based S&P 500 jumped 36.08 (1.78 per cent) to 2,048.85, while the tech-rich Nasdaq Composite Index gained 83.84 (1.81 per cent) to 4,728.15.
Equity markets took heart from a rise in oil prices after Saudi Arabia’s petroleum minister described the recent retreat in prices as temporary. Stock markets in Britain, France and Germany were all up at least 1.5 per cent.
Analysts said spirits were also lifted by the outcome Wednesday of the Fed’s two-day monetary policy meeting, which stoked talk of a “Santa Claus rally.”
The US central bank left in place market expectations that it may raise interest rates only in the middle of 2015 and not sooner, and gave a fairly upbeat assessment of the economy.
LONDON – Global stock markets have surged in a “Santa Claus rally” as dealers welcomed the outcome of the US Federal Reserve meeting which signalled an interest rate increase was not imminent.
Oil prices also rose strongly on Thursday after recent volatility but retreated later in the day, while the euro fell to $US1.2289 from $US1.2343 late on Wednesday in New York.
In Europe, London’s benchmark FTSE 100 index closed up 2.04 per cent to 6,466 points as investors welcomed British retail sales rising strongly in November as shoppers snapped up bargains.
Among other European exchanges, the Paris CAC 40 jumped 3.35 per cent to 4,249.49 points, while in Frankfurt the DAX 30 was up 2.79 per cent to 9,811.06 points.
Germany’s outlook was boosted by data showing business confidence in Europe’s biggest economy rose again in December.
Markets are “awash with positivity, following oil’s creep above $US60 per barrel, the US Fed showing faith in the US economy, and the Swiss Central Bank slashing its interest rates”, said Connor Campbell, analyst at traders Spreadex.
HONG KONG – Asian markets have mostly rallied, with investors reversing a recent sell-off spurred by a Wall Street recovery and indications the Federal Reserve will keep rates on hold until mid-2015.
The US dollar was boosted by comments from US central bank policymakers, which analysts said suggested they had changed tack and would not start to lift rates from record lows until the first six months of next year.
Tokyo climbed 2.32 per cent, or 390.32 points, to 17,210.05 on Thursday as the greenback advanced against the yen.
Hong Kong gained 1.09 per cent, or 246.37 points, to 22,832.21.
However, Seoul ended 0.14 per cent lower, dipping 2.66 points to 1,897.50, while Shanghai lost 0.11 per cent, or 3.50 points, at 3,057.52 following a four-day rally that saw it hit a four-year high.
WELLINGTON – New Zealand shares advanced, taking their lead from higher oil prices and a more optimistic US Federal Reserve.
The NZX 50 Index rose 21.891 points, or 0.4 per cent, to 5518.476 on Thursday.
