A roundup of trading on major world markets:
NEW YORK – The S&P 500 has edged higher to a new record in choppy trade following disappointing reports on US industrial production and consumer confidence.
The S&P 500 rose 1.63 points (0.08) to 2,122.73, notching its second straight record close on Friday.
The Dow Jones Industrial added 20.32 (0.11 per cent) at 18,272.56, while the tech-rich Nasdaq Composite Index dipped 2.50 (0.05 per cent) to 5,048.29.
“There’s not a lot of movement, especially considering most of the economic data we got this morning was a bit disappointing,” said Art Hogan, chief market strategist at Wunderlich Securities.
US industrial production fell 0.3 per cent in April, the fifth straight month of decline, according to Federal Reserve data.
The University of Michigan’s US consumer sentiment index plummeted to 88.6 in May from 95.9 in April.
Offsetting these data were the pullback in the US dollar and US Treasury yields, Hogan said.
Netflix rose 4.5 per cent following reports it is in talks with a Chinese partner backed by Alibaba founder Jack Ma to launch online video services in China.
Keurig Green Mountain sank 8.6 per cent after announcing details of its upcoming “Keurig Kold” appliance, which makes sodas at home. Analysts expressed concern at the high price of the device, which initially will be sold for $US299-$US369 ($A267-$A455), according to Morgan Stanley.
Package-delivery service UPS rose 1.5 per cent as Goldman Sachs upgraded the stock, saying it expects the package-delivery service to successfully implement price increases in the next couple of years.
LONDON – Europe’s equities have closed down, losing steam after an early rally on the back of European Central Bank chief Mario Draghi’s vow to continue its stimulus program for “as long as needed” to stabilise prices.
The mood of investors turned sour in afternoon trading on continuing worries over Greece, and a new batch of discouraging consumer data out of the US.
London’s benchmark FTSE 100 index of leading companies closed down 0.18 per cent to 6,960.49 points on Friday.
In Paris, the CAC 40 dipped 0.71 per cent to 4,993.82, while Frankfurt’s DAX 30 lost 0.98 per cent to 11,447.03 points compared with the close on Thursday, when many traders were away for a public holiday in both European capitals.
Eurozone bond markets meanwhile calmed following a steep sell-off in recent weeks.
“After a volatile week there was not quite the appetite for taking on more risk going into the weekend, especially with Greece seemingly days away from running out of cash,” concurred CMC Markets analyst Jasper Lawler.
That downturn in European stocks contrasted earlier gains fuelled by Dr Draghi’s stimulus pledge.
“After almost seven years of a debilitating sequence of crises, firms and households are very hesitant to take on economic risk,” he said in a speech at an International Monetary Fund forum.
“For this reason quite some time is needed before we can declare success, and our monetary policy stimulus will stay in place as long as needed for its objective to be fully achieved on a truly sustained basis.”
With the economy and inflation recently picking up, there has been speculation that the ECB would wind up early its unprecedented 1.1 trillion euros ($A1.54 trillion) asset-purchase program, widely known as quantitative easing (QE).
HONG KONG – Asian markets have mostly advanced following a healthy rally on Wall Street, while Tokyo was supported by a weaker yen and Hong Kong enjoyed strong buying in the afternoon to put on almost two per cent.
The euro remained a target for buying on Friday after this week’s upbeat eurozone growth data and despite Greece’s struggles to hammer out a debt reform deal with creditors.
Tokyo’s Nikkei index climbed 0.83 per cent, or 162.68 points to finish at 19,732.92.
Hong Kong rose 1.96 per cent, or 535.73 points, to 27,822.28 on speculation authorities will soon announce a tie-up between the city’s index and Shenzhen’s, similar to that with Shanghai.
However, Seoul fell 0.65 per cent, or 13.83 points, to close at 2,106.50 while Shanghai shed 1.59 per cent, or 69.62 points, to 4,308.69.
WELLINGTON – The New Zealand sharemarket has advanced, as cheaper oil prices benefited some leading stocks.
The NZX 50 Index rose 21.972 points, or 0.4 per cent, to 5760.376 on Friday.
