US Stocks Rebound On Tech Earnings, London Hits New Record
Fahad Shabbir (@FahadShabbir) Published April 27, 2024 | 06:48 PM
Buoyant big tech earnings lifted US stocks on Friday while London scaled another peak as investors tracked a series of takeover bids for UK companies
New York, (UrduPoint / Pakistan Point News - 27th Apr, 2024) Buoyant big tech earnings lifted US stocks on Friday while London scaled another peak as investors tracked a series of takeover bids for UK companies.
The tech heavy Nasdaq led the way on Wall Street, adding more than two percent as traders shrugged off official data showing that a key measure of inflation favored by the US Federal Reserve had accelerated in March.
The broader-based S&P added 1.0 percent while the Dow was 0.4 percent in the green as major European indices also rose.
The markets had fallen on Thursday over concerns about spending at Facebook owner Meta and slower-than-expected US economic growth in the first quarter.
But the mood changed after Microsoft and Google owner Alphabet released forecast-beating earnings after markets closed on Thursday, soothing worries that a tech-fueled global markets rally might have been overdone.
Shares in Alphabet, which had announced a dividend and the authorization of $70 billion in share buybacks, charged 10 percent higher in Friday's session.
Microsoft rose 1.8 percent after reporting a 20-percent jump in quarterly profits to $21.9 billion.
"What a difference a day makes, or even five minutes," said David Morrison, analyst at Trade Nation.
Investors were also digesting the personal consumption expenditures (PCE) price index, which rose more than expected at an annual rate of 2.7 percent in March after reaching 2.5 percent in February.
That figure pushes back the chances of interest rate cuts this summer. The Fed holds a policy meeting next week.
"The latest PCE report reiterates that it's too early for a victory lap" in the fight against inflation, said eToro analyst Bret Kenwell.
- London record highs -
In Europe, London's benchmark FTSE 100 index crowned a week which saw it advance three percent with a new record high close of 8,139.83 points. A 0.8 advance for the day left it just off a fresh intraday record of 8,146.79.
Frankfurt added 1.4 percent and Paris 0.9 percent.
Shares in British multinational mining company Anglo American rose more than two percent after falling earlier in the day following the company's rejection of a nearly $39 billion offer from Australian rival BHP.
Anglo American on Friday dismissed the bid as "highly unattractive" and "opportunistic."
Cybersecurity firm Darktrace said it had accepted a $5.
3-billion takeover offer from US private equity firm Thoma Bravo, sending its share price shooting higher.
"What a fantastic week for the FTSE 100. We've had new record highs, yet more takeover action, and everyone is talking about UK stocks in a positive way," said Russ Mould, investment director at AJ Bell.
"The bidding bonanza for UK-listed firms goes on, and this is acting as a constant reminder to global investors that, even with the FTSE 100 at a record high, UK stocks look cheap compared to their US cousins," said IG chief market analyst Chris Beauchamp.
In Asia, major equity markets rose, while the yen hit a fresh 34-year low after the Bank of Japan stood pat on interest rates, a month after raising them for the first time in 17 years.
The unit broke 157 to the dollar on Friday, fueling fresh speculation of an intervention after several officials suggested readiness to support it.
- Key figures around 2030 GMT -
New York - Dow: UP 0.4 percent at 38,239.66 (close)
New York - S&P 500: UP 1.0 percent at 5,099.96 (close)
New York - Nasdaq: UP 2.0 percent at 15,927.90 (close)
London - FTSE 100: UP 0.8 percent at 8,139.83 (close)
Paris - CAC 40: UP 0.9 percent at 8,088.24 (close)
Frankfurt - DAX: UP 1.4 percent at 18,161.01 (close)
EURO STOXX 50: UP 1.4 percent at 5,006.85 (close)
Tokyo - Nikkei 225: UP 0.8 percent at 37,934.76 (close)
Hong Kong - Hang Seng Index: UP 2.1 percent at 17,651.15 (close)
Shanghai - Composite: UP 1.2 percent at 3,088.64 (close)
Dollar/yen: UP at 157.89 yen from 155.65 yen on Thursday
Euro/dollar: DOWN at $1.0699 from $1.0730
Pound/dollar: DOWN at $1.2496 from $1.2514
Euro/pound: DOWN at 85.60 pence from 85.74 pence
Brent North Sea Crude: UP 0.6 percent at $89.50 per barrel
West Texas Intermediate: UP 0.3 percent at $83.85 per barrel
burs-jmb/tjj
Dow
Meta
MICROSOFT
Alphabet Inc.
ANGLO AMERICAN
Darktrace
INDEX CORP.
Related Topics
Recent Stories
Pakistan , Ireland to lock horns in first T20I match tomorrow
Wings of Faith: 2160 Pakistani Hujjaj reach the Prophet's city to embark on spir ..
PTI founder Imran Khan globally famous leader: Alvi
Perpetrators of May 9 incidents to be brought to justice: PM
Samina Rahmat Manal's poetry collection "Mohabbat Fatih-e-Alam" launched
CM Bugti for more funds for minorities, women, marginalized communities
No one will be allowed to disrespect Shuhada: COAS
May 9, catastrophic incidents were conspiracy to disrupt country’s development ..
Chairman Senate condemns May 9 incident
Uzbekistan's Foreign Minister meets Bilawal Bhutto
Punjab CM Maryam visits Jinnah House in connection with May 9
NA speaker strongly condemns killing of 7 innocent workers in Gwadar
More Stories From Business
-
ICCI organize ceremony to express solidarity with Armed Forces of Pakistan
1 hour ago -
Habib Arif posted as MD SIDB KP
58 minutes ago -
Finance minister highlights economy-stabilizing efforts
58 minutes ago -
Call for Tobacco Tax Increase to Safeguard Child Rights and Public Health
2 hours ago -
IPAK to raise Rs. 1.77b in book building process
58 minutes ago -
Spanish bank BBVA goes hostile in Sabadell takeover bid
1 hour ago
-
Pakistan's total liquid foreign reserves surge over $ 14.45 billion
1 hour ago -
Federal Minister for Economic Affairs, Ahad Khan Cheema chairs meeting with EDCF, Country Programme ..
3 hours ago -
London, Frankfurt stocks hit record highs on rate-cut hopes
3 hours ago -
Joint efforts imperative to address agriculture sector issues: minister
3 hours ago -
London, Frankfurt stocks hit record highs on rate-cut hopes
3 hours ago -
Spain vows to block BBVA's hostile bid for rival bank
3 hours ago