World Stocks Mixed on Friday 05/14 05:35
World shares were mostly higher on Friday after a broad rally led by tech
and financial companies snapped a three-day losing streak on Wall Street.
BANGKOK (AP) -- World shares were mostly higher on Friday after a broad
rally led by tech and financial companies snapped a three-day losing streak on
Germany's DAX gained 0.3% to 15,241.57 while the CAC 40 in Paris rose 0.4%
to 6,315.27. Britain's FTSE 100 picked up 0.6% to 7,005.56. The future for the
S&P 500 gained 0.5% while that for the Dow industrials added 0.3%.
Markets rallied late in the week as prices of key commodities such as
copper, zinc and aluminum slipped, alleviating concerns over inflation that had
Shares in big semiconductor manufacturers were among the biggest gainers.
Japan's Nikkei 225 added 2.3% to 28,084.47 and the Kospi in Seoul picked up
1% to 3,153.32, lifted by gains for Samsung Electronics and SK Hynix, which
gained 2.3% and 1.3% after announcing plans to expand their investments in chip
production and development.
In Hong Kong, the Hang Seng advanced 1.1% to 28,027.57. The Shanghai
Composite index gained 1.8% to 3,490.38, while Australia's S&P/ASX 200 was 0.5%
higher at 7,014.20.
Shares fell 2.5% in Singapore, which has discovered fresh outbreaks of
coronavirus, potentially jeopardizing plans to establish a travel "bubble" with
Bitcoin added 3.6% to $50,105.00. Its price plunged 10% earlier this week
after Tesla CEO Elon Musk reversed his earlier position on the digital currency
and said the electric car maker would no longer accept it as payment.
On Thursday, the S&P 500 notched a 1.2% gain, closing at 4,112.50 after
clawing back almost half of its loss from a day earlier, when it had its
biggest one-day drop since February.
Technology stocks led the gainers after sinking earlier in the week as
investors fretted about signs of rising inflation. Apple, Microsoft, Facebook
and Google's parent company all rose. Financial companies also did well.
JPMorgan Chase, Charles Schwab and Capital One Financial each rose more than 2%.
In a reversal from Wednesday, the energy sector was the only loser in the
S&P 500 as oil prices fell sharply as the reopening of the Colonial Oil
pipeline after a cyberattack eased concerns about supplies.
The Dow Jones Industrial Average rose 1.3% to 34,021.45. The Nasdaq climbed
0.7% to 13,124.99. The Russell 2000 index picked up 1.7% to 2,170.95.
Investors have been questioning whether rising inflation will be something
transitory, as the Federal Reserve has said, or something more durable that the
Fed will have to address. The central bank has kept interest rates low to aid
the recovery, but concerns are growing that it will have to shift its position
if inflation starts running too hot.
Bond yields have risen sharply this week but pulled back slightly on
Thursday. The yield on the 10-year Treasury note was 1.65% on Friday, compared
with 1.70% on Wednesday.
The price of U.S. crude oil lost 21 cents to $63.61 per barrel in electronic
trading on the New York Mercantile Exchange. It fell 3.4% on Thursday after the
Colonial gasoline pipeline on the East Coast was reopened late Wednesday.
Brent crude, the international standard for pricing, lost 12 cents to $66.93
The U.S. dollar fell to 109.26 Japanese yen from 109.46 yen late Thursday.
The euro climbed to $1.2124 from $1.2081.