A roundup of trading on major world markets:
NEW YORK – Wall Street stocks have jumped as oil prices rebounded, snapping a five-day losing streak that had left the equity market looking oversold to some investors.
The Dow Jones Industrial Average gained 190.86 points (1.10 per cent) on Friday to 17,511.57.
The broad-based S&P 500 rose 26.75 (1.34 per cent) to 2,019.42, while the tech-rich Nasdaq Composite Index surged 63.56 (1.39 per cent) to 4,634.38.
Investors were reassured by a healthy 5.3 per cent rise in US oil prices as the International Energy Agency declared there were signs “the tide will turn” in the battered oil market following recent multi-year lows.
Mace Blicksilver, director of Marblehead Asset Management, said the market was due for a good day after a five-day slide that had left the S&P 500 below 2,000.
But Blicksilver said there has been “no trend change” and that investor anxiety remains elevated.
LONDON – European stocks have pushed higher on fresh signals the ECB will launch a bond-buying stimulus program next week, while the euro plunged below $US1.15 for the first time in more than 11 years.
Frankfurt’s DAX 30 rose 1.35 per cent to a record close of 10,1677 points and hit an intra session record high of 10,207.97, while the CAC 40 in Paris gained 1.31 per cent to 4,379.62.
London’s benchmark FTSE 100 index rose 0.79 per cent to 6,550.27 points.
Meanwhile Switerzerland’s SMI tumbled 5.96 per cent, still reeling from the Swiss National Bank (SNB) abruptly ending Thursday its policy to hold down the value of the franc, which saw the currency soar.
The SNB came under fire Friday for its surprise withdrawal of the floor of 1.20 francs to the euro, as the sharp rise of the currency threatens causing a slump in the export-dependent economy and has bankrupted several foreign exchange broker firms worldwide.
A brokerage in Britain and another in New Zealand declared insolvency Friday as they were caught out by the swift rise in the franc, while the shares of a US brokerage were suspended.
HONG KONG – Asian markets tumbled as traders were left stunned by Switzerland’s shock decision to remove its currency cap against the euro.
Tokyo tumbled 1.43 per cent, or 244.54 points, to end at 16,864.16. The index at one point was almost three per cent down but recovered as the yen pared its gains.
Seoul closed 1.36 per cent lower, giving up 26.01 points to 1,888.13 and Hong Kong fell 1.02 per cent, or 247.39 points, to end at 24,103.52
However, Shanghai rose 1.20 per cent, or 40.04 points, to 3,376.50. Traders extended a more than three per cent gain on Thursday that was fuelled by bets that the government will unveil new economy-boosting measures.
WELLINGTON – New Zealand shares have fallen as investors looked to crystallise recent gains.
The NZX 50 Index fell 25.33 points, or 0.4 per cent, to 5616.73 on Friday.
