U.S. Markets Advance, Tensions in Cypruse on the Rise

Nichole Harper
20 Mar, 2013
New York City

Stocks on Wall Street opened higher and struggled to retain the small gains after the two hours of trading. The dollar advanced on the rising tensions between international lenders and Cyprus after lawmakers rejected a tax on bank depositors.

[R]11:45 AM New York – Stocks on Wall Street opened higher and struggled to retain the small gains after the two hours of trading. The dollar advanced on the rising tensions between international lenders and Cyprus after lawmakers rejected a tax on bank depositors.[/R]

U.S. stocks opened higher ahead of the Federal Reserve statement in the early afternoon and built on gains in the European markets despite the growing uncertainties in the euro zone.

The S&P 500 index increased 0.6% to 1,557 and the Nasdaq Composite Index added 16.82 or 0.5% to 3,246.

Markets in Europe shrugged off the rising tensions between troika lenders and Cyprus after the lawmakers in the island nation rejected the deposit-tax conditions laid out by the international lenders.

All lawmakers in Cyprus voted down the proposal.

In London trading, FTSE 100 index inched up 0.1% or 3.8 to 6,445 and in Frankfurt the DAX index gained 0.7% to 55.3 to 8,003.

In Paris, CAC 40 index increased 1.2% or 44.8 to 3,821.

In Asian trading, the Shanghai Composite index increased 2.7% ahead of the manufacturing data release tomorrow and banks and developers led the gainers. Markets in Tokyo were closed for a holiday.

The benchmark index in Mumbai fell 0.7% after the governing coalition controlled by the Congress Party lost support of a key regional ally.

Stocks in Review

Adobe Systems ((ADBE)) soared 5% after the software company reported subscriptions demand for its digital creative and marketing services were ahead of expectations.

General Mills ((GIS)) reported higher than expected quarter profit on the recent acquisition in Brazil and Canada.

FedEx Corp ((FDX)) declined 5% after the parcel-delivery company reported quarterly earnings 31% and results were below analyst estimates on a weakness in international airfreight market.

JPMorgan Chase & Co ((JPM)) agreed to a settlement with former customers of now defunct MF Global Holdings valued at $546 million.

Williams-Sonoma ((WSM)) soared 6% after the housewares and furniture retailer reported higher than estimated quarterly revenues and earnings. The retailer also increased its annual dividend and the company approved the repurchase of $750 million of its stock.