Gains in bank and technology shares helped send the Standard & Poor’s 500 Index to a seven-week high, amid optimism on the economy after data showed weakness in manufacturing may be easing while crude oil showed further signs of stabilizing.
The S&P 500 climbed 1.1 percent to 1,951.75 at 4 p.m. in New York, with the gauge erasing its February decline.
The U.S. equity benchmark eliminated this month’s slide after losing as much as 6.7 percent at the close on Feb. 11. The benchmark continued its rebound from a nearly two-year low and has cut its 2016 drop by more than half.
The S&P 500 topped its average price during the past 50 days at 1,945 for the first time this year. It was the second run at that level this week after approaching it Monday as the benchmark reached a six-week high. The index last closed above the 50-day moving average on Dec. 29.
Source : Bloomberg
European stocks rallied, trimming their worst January drop since 2008, after the Bank of Japan’s added stimulus stoked optimism of policy support for global growth.
The Stoxx Europe 600 Index rose 2.2 percent at the close, after the BOJ announced a negative interest rate. In the U.S., a report showed slower economic growth last quarter, after Federal Reserve officials said this week they’ll watch how global financial developments affect the American outlook.
Equities have had a wild ride this year as China’s slowdown and an oil rout spurred anxiety about the global economy. After reaching a 15-month low last week, the Stoxx 600 got a boost from Mario Draghi’s comments that the European Central Bank may reconsider its policy stance in March. The benchmark has gained 1.2 percent this week, trimming its January losses to 6.4 percent.
Among other stocks moving on corporate news, Gamesa Corp Tecnologica SA surged 19 percent after a report that Siemens AG is exploring an acquisition of the company. Telefonica SA advanced 3.6 percent after saying it will offer employees early retirement in a plan that will save money in the long term.
Source : Bloomberg