DailyMarkets.com (New York) - The U.S. stock markets had a strong showing this week despite mixed moves on Friday. The S&P 500 index gained 1% to 1,149.99 this week, and hit a 17-month high at 1150.24 on March 11. Since its bear-market low on March 9, 2009, it has risen an impressive 70%. The Dow climbed 0.6% to 10,624.69.
Stocks managed to rise this week even after a report showed that inflation in China rose more than expected, leading investors to think that China will raise interest rates to cool the world's fastest-growing economy.
Investors felt more optimistic about the health of banks. Citigroup (3.97 -0.21 -5.02%) rallied more than 13% for the week after its CEO Vikram Pandit said the bank was moving toward "sustained profitability", and also on speculation that the U.S. government may sell its stake.
Giant insurer American International Group Inc. ( 34.23 -0.88 -2.51%) jumped 22% after selling AIA to MetLife Inc. ( 42.11 -0.21 -0.50%) for $15.5 billion.
U.S. retail sales unexpectedly increased in February. The Commerce Department said purchases at stores rose 0.3%, the fourth increase in five months. Analysts had expected sales to drop.
In forex trading, the Euro hit a one-month high against the U.S. dollar as fears that Greece would default faded. Goldman Sachs ( 174.96 +1.45 +0.84%) said investors should buy the Euro against the greenback, betting it could rise to 1.4500.
The Japanese yen declined against all major currencies on increasing risk appetite and as Japanese officials warned that the government is ready to intervene in the forex market to prevent the yen from strengthening.
In the coming week, the Federal Reserve's interest rate committee meets on Tuesday. They are expected to maintain the key interest rate at a record low of near zero, and investors will be interested in the bank's policy statement.
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