Sharechat Logo

While you were sleeping US factory orders, health care

Wednesday 3rd April 2013

Text too small?

Wall Street advanced as solid economic data and a sigh of relief for the health care industry underpinned sentiment.

The latest data on the US economy bolstered expectations that the recovery is on track at a pace that will also safeguard the Federal Reserve's backing.

Factory orders advanced 3 percent in February, slightly ahead of economists' expectations for a 2.9 percent gain.

"Good numbers are good and bad numbers are good because it keeps the Fed at the side of the market," Burt White, managing director and chief investment officer at LPL Financial in Boston, told Reuters. "The market continues to move higher, driven by the premise of stimulus."

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.65 percent, as did the Standard & Poor's 500 Index, while the Nasdaq Composite Index gained 0.73 percent.

Health care stocks gained after the government said it will lift payments for private Medicare Advantage insurers by 3.3 percent, scrapping its original plans to lower rates.

Shares of Humana rose 6.5 percent, while those of UnitedHealth climbed 4.9 percent.

In Europe, the Stoxx 600 Index ended the session with a 1.3 percent advance from the previous close. Most European markets had been closed for the Easter holidays on Friday and Monday.

Benchmark stock indexes in London, Frankfurt and Paris rose as well, adding 1.2 percent, 1.9 percent and 2 percent respectively.

The tone of Wall Street helped boost the mood in the euro zone, outweighing the latest batch of disappointing clues on the regional economy.

Euro-zone unemployment climbed to a record 12 percent in February, according to the European Union's statistics office. The January figure was also revised up to 12 percent, from an earlier estimate of 11.9 percent.

A gauge of manufacturing in the region dropped to 46.8 in March, the lowest in three months, and down from 47.9 in February, according to Markit Economics.

"It's a mix of the weaker-than-expected PMI data and the rise in the unemployment rate," Brian Daingerfield, a currency strategist at Royal Bank of Scotland Group's RBS Securities unit in Stamford, Connecticut, told Bloomberg.

"With those two pieces of data coming in soft, along with general weakening in some of the macro data we've seen, there may be some expectations being priced in for additional ECB easing."

The ECB's policymakers meet on Thursday.

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020
General Capital gives notice of Annual Meeting
Scales Corporation - Business Update
Fonterra Co-operative Group Global Dairy Update
Fonterra revises its 2019/20 and 2020/21 forecast Farmgate Milk Price ranges
Briscoe Group Limited Market update: 2nd Quarter Sales to 26 July 2020

IRG See IRG research reports