Stocks Advanced on U.S. Corporate Results

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Global stocks were lifted by solid earning results from U.S. corporates and belief in U.S. Federal Reserve’s action to boost growth.


Investors cheered as solid earning results from JPMorgan Chase & Co., (NYSE: JPM) and Intel Corp. (NASDAQ: INTC; SEHK: 4335; Euronext: INCO). Strong earnings helped Wall Street advanced on Wednesday. JPMorgan Chase’s profit rose 23 percent while Intel got a 59 percent jump in net income.


Global stocks have got momentum in recent weeks as traders hoped Federal Reserve will enact a bond-buying program at the beginning of November. It action would drive interest rates and yields lower.


On Wednesday, the U.S. stock market “painted a picture of investor enthusiasm and increased risk appetite.


In terms of Thursday trading in Europe, Germany\'s DAX advanced 0.8 percent to 6,483.52, France\'s CAC-40 gained 0.4 percent to 3,845.10, and Britain\'s FTSE 100 got 9 points to 5,756.64.


Stephen Pope, managing partner at Spotlight Ideas, said that European stock markets had booked increases as solid earning results gave a boost to confidence in the global economic recovery.


Asia, Australia\'s S&P/ASX 200 added 1.7 percent at 4,699.1, South Korea\'s Kospi was up 1.2 percent to 1,899.76, and Japan\'s benchmark Nikkei 225 stock index ended at 9,583.51, up 1.9 percent.


The Monetary Authority of Singapore announced to loosen the trading band of its currency to allow more appreciation. Citibank said that the announcement was an indication of growth resilience outside of the U.S.


According to the Trade and Industry Ministry, the country’s economic growth slowed in June-September period. GDP expanded 10.3 percent in the third quarter year-on-year, down from 19.6 percent in the second quarter. Singapore was said to be the world’s bellwether with most exposure to global growth.


Chinese shares were mixed as small shares fell on profit-taking. Hong Kong\'s Hang Seng index was up 1.7 percent to 23,852.17. The benchmark Shanghai Composite Index was up 0.6 percent to 2,879.64.


The dollar continued to depreciate against the euro. Oil prices surged close to $84 a barrel in Asia. Unexpected decline in U.S. crude supplies last week signed growing demand. The U.S. dollar hit bottom against the yen on Monday and Thursday.


Benchmark oil for November delivery rose 97 cents to $83.96 a barrel at late afternoon Singapore time Thursday.


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Neil Karen has 386 articles online and 17 fans

Economics is the study of our lives,our jobs, our homes, our families and the little decisions we face every day. Thus, I am keen on reading and studying economic issues.

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Stocks Advanced on U.S. Corporate Results

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This article was published on 2010/10/15