US stocks rally after China data, JPMorgan earnings

New York, April 14 (IANS) The US stocks traded higher in the morning session on Wednesday, after strong Chinese trade data and JPMorgan Chase’s better-than-expected quarterly profit.

By noon, the Dow Jones Industrial Average gained 154.88 points, or 0.87 percent, to 17,876.13. The S&P 500 rose 17.20 points, or 0.83 percent, to 2,078.92. The Nasdaq Composite Index was up 64.35 points, or 1.32 percent, to 4,936.44, Xinhua news agency reported.

China’s exports in yuan-denominated terms surged 18.7 percent year on year in March, the first increase since December, compared with a slump of 20.6 percent in February and a 6.6-percent fall in January, showed figures from the General Administration of Customs released on Wednesday.

Imports dipped 1.7 percent, an improvement from February’s eight-percent drop.

China’s stocks staged a rally on Wednesday as the trade data suggested stabilisation in China’s economy.

Meanwhile, JPMorgan Chase reported on Wednesday first-quarter 2016 net income of $5.5 billion, or $1.35 per share, on revenue of $24.1 billion. Its shares surged 4.54 percent at $61.97 per share around midday trading.

On the economic front, the advance estimates of the US retail and food services sales for March were $446.9 billion, a decrease of 0.3 percent from the previous month, and 1.7 percent above March 2015, the US Commerce Department said on Wednesday.

The Producer Price Index for final demand fell 0.1 percent in March, seasonally adjusted, the US Labour Department said on Wednesday. On an unadjusted basis, the final demand index moved down 0.1 percent for the 12 months ended in March.

Germany’s benchmark DAX index closes higher

Frankfurt, April 14 (IANS) The benchmark DAX index at Frankfurt Stock Exchange on Wednesday rose markedly and closed above 10,000 points.

The exports of China grew strongly in March and oil prices rose, which boosted the confidence of investors, according to analysts.

The blue-chip DAX index gained 264.63 points, or 2.71 percent, and closed at 10,026.1 points, Xinhua news agency reported.

Deutsche Bank surged by 9.91 percent. Commerzbank advanced by 7.03 percent. Thyssenkrupp rose by 6.07 percent. Linde, an industrial gas company, added 4.38 percent. HeidelbergCement went up by 4.27 percent.

Vonovia, a real estate company, slipped by 0.25 percent.

Daimler was the most traded share of the day with a turnover of $365.87 million.

US dollar rallies on strong trade data from China

New York, April 14 (IANS) The US dollar increased against other major currencies on Wednesday as China’s strong trade data raised market expectation for a rate hike by the US Federal Reserve in the near future.

China’s exports in yuan-denominated terms surged 18.7 percent year on year in March, the first increase since December, compared with a slump of 20.6 percent in February and a 6.6-percent fall in January, according to figures released by the General Administration of Customs on Wednesday.

Imports dipped 1.7 percent, an improvement from February’s eight-percent drop, reports Xinhua.

Analysts said the upbeat Chinese data suggested stabilisation in the country’s economy, which may allow the Fed to consider raising rates before the mid-year.

The dollar index, which measures the greenback against six major peers, was up 0.87 percent at 94.772 in late trading.

In late New York trading, the euro fell to $1.1283 from $1.1388 of the previous session, and the British pound declined to $1.4214 from $1.4266. The Australian dollar went down to $0.7656 from $0.7679.

The U.S. dollar bought 109.29 Japanese yen, higher than 108.60 yen of the previous session. The dollar increased to 0.9670 Swiss franc from 0.9555 Swiss franc and inched up to 1.2815 Canadian dollars from 1.2760 Canadian dollars.

Singapore’s GDP grows 1.8 percent in Q1

Singapore, April 14 (IANS) The Singapore economy rose 1.8 percent year-on-year in the first quarter, the same growth pace as in the previous quarter, according to estimates released by the ministry of trade and industry (MTI) on Thursday.

Growth was flat on a quarter-on-quarter seasonally-adjusted annualised basis, in contrast to a 6.2-percent expansion in the preceding quarter, Xinhua news agency reported.

The manufacturing sector contracted 2.0 percent year-on-year in the first quarter, following a 6.7-percent decline in the previous quarter. The sector was primarily weighed down by a decline in the output of the transport engineering, precision engineering and electronics clusters.

On a quarter-on-quarter seasonally-adjusted annualised basis, the sector rebounded to a growth of 18.2 percent, compared to a 4.9-percent contraction in the preceding quarter.

The construction sector expanded 6.2 percent in the first quarter, an improvement from 4.9 percent recorded in the previous quarter. The stronger growth in the sector was supported by both public and private sector construction activities. On a quarter-on-quarter seasonally-adjusted annualised basis, the sector grew 10.2 percent, accelerating from 6.0 percent in the preceding quarter.

The services producing industries rose 1.9 percent, easing from 2.8 percent in the previous quarter. Growth was supported mainly by the wholesale and retail trade and finance amd insurance sectors. On a quarter-on-quarter basis, the services producing industries contracted at an annualised rate of 3.8 percent, a reversal from a 7.7-percent expansion in the preceding quarter.

MTI said it will release the preliminary GDP estimates for the January-March period, including performance by sectors, sources of growth, inflation, employment and productivity, in its Economic Survey of Singapore in May.

Tokyo shares open higher

Tokyo, April 14 (IANS) Tokyo shares opened the trading Thursday sharply higher following the yen’s retreat and gains in the overnight US stocks market.

At 9.15 a.m. local time, the 225-issue Nikkei Stock Average jumped 314.66 points, or 1.92 percent, higher from Wednesday to 16,695.88, Xinhua news agency reported.

The broader Topix index of all First Section issues on the Tokyo Stock Exchange was up 22.74 points, or 1.71 percent, to 1,355.18.

Chinese shares open higher

Beijing, April 14 (IANS) Chinese stocks opened higher on Thursday, with the benchmark Shanghai Composite Index up 0.44 percent, at 3,080.09 points.

The smaller Shenzhen index opened 0.53 percent higher at 10,741.65 points, Xinhua news agency reported.

The ChiNext Index, tracking China’s NASDAQ-style board of growth enterprises, gained 0.72 percent to open at 2,310.60 points.

Chinese yuan weakens against dollar

Beijing, April 14 (IANS) The central parity rate of the Chinese currency renminbi, or the yuan, weakened 300 basis points to 6.4891 against the US dollar on Thursday, according to the China Foreign Exchange Trading System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day, reports Xinhua.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

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