US stocks push up as Nasdaq sets record
WASHINGTON, D.C.: US stocks pushed higher on Thursday (Friday in Manila), with the tech-heavy Nasdaq striking a new record ahead of Apple and Amazon results.
Meanwhile, the euro surged against the dollar as the bank’s chief indicated its pandemic stimulus program will likely end in March, although as expected, the European Central Bank (ECB) held its interest rate and stimulus levels steady.
The fresh record in the Nasdaq comes as a string of healthy corporate earnings reports has provided a crucial boost to trading floors, helping push markets to multiyear or record highs.
The S&P 500 was also close to its record high.
The rising stock indices came despite government data showing the US economic expansion slowed dramatically in the third quarter to an annual rate of just 2 percent as consumer spending moderated amid resurgent Covid-19 infections.
That was the slowest rate in over a year and below analyst expectations.
But US President Joe Biden announced on Thursday a revised $1.75-trillion social spending plan that he is confident Democrats will support to end weeks of wrangling and which would prop up the economy going forward.
And new weekly unemployment claims came in at another pandemic-era low.
Pressure on central banks to tighten monetary policy to curb runaway prices sent equities lower in Asian trade as spiking Covid infections act as a reminder that the pandemic is far from over.
The Bank of Japan held its own easing policy in place on Thursday, coming after the Bank of Canada said it would end its vast bond-buying program and flagged an interest rate hike earlier than expected in 2022.
Brazil also raised rates on Wednesday, mirroring recent moves by South Korea and New Zealand and awaiting expected rate-tightening by the Bank of England and Reserve Bank of Australia.
The Federal Reserve is expected to start tapering its vast bond-buying program by the end of the year and hike rates in the middle of 2022.
Meanwhile, the ECB’s Christine Lagarde indicated that she believes its pandemic stimulus program, the PEPP, will indeed end in March when it is scheduled to expire.
Lagarde’s “strongest statement was around the PEPP purchases ending in March, making the statement more hawkish than anticipated,” said Matt Weller, head of research at Forex.com.
The euro popped to its highest level of the month against the dollar.
Concerns over renewed USChina tensions were also in play on Thursday.
The decision this week by the United States to ban China Telecom from operating in the country on national security concerns is “malicious suppression,” Beijing said, warning the development would damage a tentative thaw in relations.
Elsewhere, on Thursday, oil prices extended losses following data showing a big gain in US inventories of crude and petrol.
The figures eased concerns about a supply crunch and surging demand.
News that Iran and the European Union had agreed to restart talks on Tehran’s nuclear program added to the selling pressure, raising the prospect of more crude hitting markets if sanctions in the Middle Eastern country are eased.
Key figures around 1530 GMT
New York - Dow: UP 0.5 percent at 35,662.92 points
EURO STOXX 50: UP 0.2 percent at 4,228.75
London - FTSE 100: DOWN less than 0.1 percent at 7,249.47 (close)
Frankfurt - DAX: DOWN less than 0.1 percent at 15,696.33 (close)
Paris - CAC 40: UP 0.8 percent at 6,804.22 (close)
Tokyo - Nikkei 225: DOWN 1.0 percent at 28,820.09 (close)
Hong Kong - Hang Seng Index: DOWN 0.3 percent at 25,555.73 (close)
Shanghai - Composite: DOWN 1.2 percent at 3,518.42 (close)
Euro/dollar: UP at $1.1682 from $1.1602 at 2035 GMT
Pound/dollar: UP at $1.3808 from $1.3738
Euro/pound: UP at 84.60 pence from 84.44 pence
Dollar/yen: DOWN at 113.30 from 113.82 yen
Brent North Sea crude: DOWN 0.9 percent at $83.80 per barrel
West Texas Intermediate: DOWN 0.8 percent at $82.02 per barrel