Earnings create a bright week for the markets

Earnings create a bright week for the markets
Earnings create a bright week for the markets

Wall Street’s major indices opened higher on Friday after Goldman Sachs completed a solid earnings season for major banks, while an unexpected rise in retail sales bolstered opinions about the economic recovery.

The Dow Jones Industrial Average rose 111.07 points, or 0.32 percent, to 35023.63 points. The Standard & Poor’s 500 index opened, up 9.43 points, or 0.21 percent, to 4,447.69 points, and the Nasdaq Composite Index increased 67.81 points, or 0.46 percent, to 14,891.24 points.

In Europe, stocks headed for their best weekly performance in seven months as strong earnings reports helped reassure investors and allay concerns about rising inflation.

The pan-European Stoxx 600 index rose 0.4 percent by 07:07 GMT, heading towards ending the week up 2.3 percent, supported by a significant improvement in investors’ risk appetite in the past two sessions.

Banks were the biggest gainers in Europe after quarterly results that beat expectations from four of the largest lenders on Wall Street on Thursday. Shares in the retail, oil and gas and travel sectors rose between 0.6 and one percent.

Shares of German fashion house Hugo Boss rose 3.8 percent after it raised its expectations for the current year after rebounding third-quarter earnings on the back of strong demand in Europe and the Americas. Shares of Rio Tinto, listed in Britain, fell 1.3 percent after the Australian mining company cut its forecast for iron ore shipments for 2021 due to the crisis in the labor market, while shares of the Swiss banking software company Temenos fell 14 percent after the results were released. Shares of the French cloud computing services company O. in a. HCloud rose 1.8 percent in its debut on the Paris stock market.

In Asia, the Nikkei index jumped to its highest level in more than two weeks and achieved its first weekly gain in four weeks, after overnight gains on Wall Street boosted technology giants before their earnings results were announced.

The Nikkei index rose 1.81 percent to close at 29,068.62 points, while the broader Topix index rose 1.86 percent to 2023.93 points. The Nikkei rose 3.64 percent this week, while the Topix rose 3.16 percent, after three weeks of losses.

“The big gains in technology stocks gave the market a big boost,” said Shigetoshi Kamada, general manager of research at Tachibana Securities. Many Japanese companies are also expected to raise their forecasts for this year. This will be a boost to the market.”

Chip-making equipment maker Tokyo Electron contributed the largest share to the Nikkei’s gain, rising 2.97 percent. Robotics maker Fanuc shares jumped 5.61 percent.

In turn, gold headed towards its best week in nearly five months, supported by the decline of the US dollar, which enhanced the attractiveness of the yellow metal despite the imminent reduction of the stimulus measures taken by the Federal Reserve.

By 06:09 GMT, gold fell 0.2 percent to $ 1792.54 an ounce, but rose two percent during the week. US gold futures fell 0.3 percent to $1,793.10 an ounce. And the dollar index headed towards its first weekly decline in six weeks, which strengthened the attractiveness of gold to buyers of other currencies.

As for other precious metals, silver fell 0.4 percent to $23.45 an ounce, but it is about to record the largest weekly increase in seven weeks. And platinum rose 0.1 percent to 1056.02 dollars an ounce. Palladium rose 0.4 percent to $2,137.68 an ounce. Platinum and palladium are heading towards recording gains for the second week.

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