A roundup of trading on major world markets:
NEW YORK – A sharp rally in crude oil and energy shares has lifted US stocks, but indexes registered losses for the week and investors were cautious ahead of earnings season.
US crude oil settled more than six per cent higher after data showed lower US stockpiles, driving gains of two per cent in the S&P energy index.
Earnings begin in earnest next week with reports from Alcoa and four of the big banks. Analysts are projecting a third straight quarterly decline in earnings at S&P 500 companies.
Investors took their cue again from the oil market and the Federal Reserve, but focus will shift next week to expectedly weak quarterly reports, said Peter Kenny, senior market strategist at Global Markets Advisory Group, in Berkeley Heights, New Jersey.
“The Street is not expecting much in Q1 earnings, but right now the market is moving as a direct result of dovish commentary from the Fed and crude’s ability to rally. That is good news for investors but I’m not sure how long of a shelf life that has,” he said.
The Dow Jones industrial average was up 35 points, or 0.2 per cent, to 17,576.96, the S&P 500 gained 5.69 points, or 0.28 per cent, to 2,047.6 and the Nasdaq Composite added 2.32 points, or 0.05 per cent, to 4,850.69.
LONDON – Britain’s top share index has posted another weekly rise, helped by buoyant commodity stocks and continuing a run that has seen it outperform European indexes.
The FTSE 100 was up 67.52 points, or 1.1 per cent, at 6,204.41 points at its close on Friday, up one per cent for the week.
Mining shares rose 3.8 per cent. Anglo American , BHP Billiton, Rio Tinto, Glencore and Antofagasta gained 1.6 to 8.1 per cent .
Energy shares contributed around 19 points to gains. BP and Shell added the most points to the index after Brent crude rose above $US40 a barrel.
Some analysts still weren’t convinced risk appetite had increased, though.
“I think there is definitely an element of short-covering to some of the upside moves that we’re seeing at the moment, and it isn’t necessarily manifesting (in) any real risk-on sentiment,” Brenda Kelly, head analyst at London Capital Group, said.
HONG KONG – Most Asian shares fell to three-week lows, but Japan bucked the trend after its finance minister pledged to guard against strong moves in the yen in either direction.
That led to a slight retreat in the yen from a 17-month high against the US dollar.
MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.2 per cent.
Japan’s Nikkei erased earlier losses after Finance Minister Taro Aso said the government would take steps to counter “one-sided” moves in the yen in either direction.
The yen’s strength is regarded as negative for Japan’s big exporting firms, and after earlier falling to near-two-month lows ion strong yen buying, the Nikkei rose 1.2 per cent, leaving it with losses of 1.4 per cent for the week.
“Not only is (the yen’s rise) bad for Japanese growth but it can also be seen as a negative sign for the global economy to the extent that it may signal unwinding carry trades and hence less risk taking in capital flows,” Shane Oliver, head of investment strategy at AMP Capital in Sydney, wrote in a note.
Chinese stocks also retreated ahead of a slew of economic data for March due over the next week, including money supply, new lending and inflation.
The Shanghai Composite index slid 0.7 per cent. The CSI 300 was down 0.6 per cent. Hong Kong’s Hang Seng slipped 0.4 per cent.
WELLINGTON – The S&P/NZX 50 shed 24.94 points, or 0.4 per cent, to 6,730.29.
