A strong rally for equity markets

Friday, May 15, 2015

Asian equity markets rebounded strongly overnight. The Hang Seng index posted renewed strong gains and climbed over 1.6% above 27,700. The Nikkei Index followed the uptrend and extended gains over 0.8% towards 19,740. In the US, equity markets surged showing strong upside momentum. The Dow Jones climbed nearly 200 points (+1.06%) to retest 18,250, while the S&P 500 index reached a record high at 2121.45 to end the trading session at 2121.10.

S&P 500 index

SPX Index (S&P 500 Index )  Weekl 2015-05-15 09-01-34

US President Barack Obama pledged to increase the US security commitment to Gulf partners, including both military and online, following talks at the Camp David Presidential retreat yesterday. Obama pledged assistance to the Gulf Cooperation Council in order to confront “a full range of threats” in the region including Iran’s nuclear program, the civil war in Syria and possible threats posed by the Islamic State in Iraq and Syria, according to a report from CNBC.   

European equity markets extended gains this morning. The DAX, CAC, IBEX and London equity benchmark indices edged higher in early trade. There were no substantive Greek developments yesterday while there are new rumours that Athens could call an emergency Eurogroup meeting in late May 2015. Market participants could remain cautious awaiting for official comments and rumours over the weekend.

The euro reversed recent gains and slid slightly lower this morning hovering around 1.1370 against the USD. The USD index edged higher and traded around 93.50 against a basket of currencies. The main focus will turn to the release of the US NY Fed manufacturing and industrial production data as well as economic sentiment from the University of Michigan survey.  

USD index - 2 years Chart

DXY Curncy (DOLLAR INDEX SPOT)   2015-05-15 09-02-53

Events for today:

0930

UK

Mar

Construction Output

1330

US

May

NY Fed Manufacturing

1415

US

Apr

Industrial Production

1500

US

May

Michigan Survey

 

All times UK Local Time

Topics: Equities, USD, Asia, Europe, EUR, US, Greece
More from: Myrto Sokou