S&P 500 Surges 1.2%, DAX in Frankfurt Soars 2.4%

Nichole Harper
10 Jun, 2015
New York City

Market indexes on Wall Street gained on both sides of Atlantic on reports that Greece and international lenders are closer than expected in reaching a compromise. Johnson Controls is looking to sell its automotive business unit. Cap Gemini to raise

[R]1:25 PM – Market indexes on Wall Street gained on both sides of Atlantic on reports that Greece and international lenders are closer than expected in reaching a compromise. Johnson Controls is looking to sell its automotive business unit. Cap Gemini to raise €506 million to finance iGate purchase.[/R]

Market indexes on both sides of Atlantic traded higher on reports that Greece and international lenders are inching closer to a compromise.

Market expectations ran high in the absence of details and ahead of May U.S. retail sales report tomorrow.

On Wall Street, Tollbooth Strategy Index climbed 1.1% or 118.12 to 10,743.34.

S&P 500 index jumped 1.2% or 25.28 to 2,105.41 and the Nasdaq Composite Index increased 1.3% or 65.43 to 5,079.24.

Crude oil in New York rose 57 cents to $60.71 a barrel and gold gained $9.60 to $1,187.20 an ounce.

U.S. Movers

Assurant, Inc ((AIZ)) gained 1.3% or 86 cents to $66.66 after the insurance services provider said it will sell some small-group businesses to National General Holdings Corp and plans to exit from health insurance market to support housing and lifestyle specialty protection products and services.

Assurant said cost related to exit would be in the range of $175 million to $250 million and total future incremental cash expenditures will be between $95 million and $110 million.

The insurer estimated to complete its exit of the health insurance market by the end of 2016.

Johnson Controls Inc ((JCI)) climbed 4.9% or $2.56 to $54.12 after the diversified technology company announced today that it is exploring strategic options for the separation of its automotive business.

The company said Johnson Controls Operating System already delivering results and is expected to yield $2 billion in incremental segment income by fiscal 2020.

European Markets

Total production output in April rose 0.4% from March and jumped 1.2% from a year ago month, Office of National Statistics said.

In London trading, FTSE 100 index jumped 0.6% or 42.37 to 6,796.29 and in Frankfurt the DAX index climbed 1.3% or 145.23 to 11,144.78.

In Paris, CAC 40 index increased 0.6% or 30.06 to 4,882.31.

Bayer AG jumped 2.9% to €127.95 after the Germany-based conglomerate agreed to sell its diabetes devices business to Japan-based healthcare company Panasonic Healthcare Co., Ltd for about €1.02 billion or about 138 billion yen.

The transaction is expects to close in the first-quarter of next year.

Cap Gemini SA fell 0.7% to €77.17 after the France-based professional consultation services provider said it launched a stock offering of 7 million new shares priced at €75.50 a share to raise €505.8 million to finance the purchase of iGATE Corp.

On April 27, the company agreed to acquire the U.S.-based and India-focused iGATE Corp, the integrated technology and operational solutions provider for a cash consideration of $48 a share or about $4 billion.

The transaction is expected to close in the second quarter.

Inditex SA slipped 1.3% to €29.61 after the Spain-based fashion accessories retailer reported group revenues in the first-quarter ending in March soared 17% to €4.37 billion from €3.75 billion in a year ago period.

Net profit in the quarter surged 28% from a year ago to €521 million compared to €406 million.

Asian Markets

Stocks eased in Japan for the fourth day and the Nikkei average dropped to a three-week low after the yen advanced for the second day. BoJ Governor Kuroda said effective exchange rate is not likely to weaken more.

Tokio Marine agreed to acquire U.S. based insurer for $7.5 billion.

Market indexes in Tokyo declined for the fourth-day in a row and the Nikkei average fell to a 3-week low after the yen surged following comments from Haruhiko Kuroda, Governor of Bank of Japan.

On economic front, core machine orders in April climbed 3.8% following 2.9% increase in March, the Cabinet Office said.

For the year, core machine orders increased 3% after rising 2.6% last month.

Producer prices in May rose 0.3% compared to 0.1% increase in April, the Bank of Japan said. On a yearly basis, producer prices in May declined 2.1% from a year earlier, decreased second month in a row.

Export prices in May climbed 4.8% while import prices plunged 8.3% from a year ago moth.

The Nikkei 225 Stock Average fell 49.94 or 0.2% to 20,046.36 and the broader Topix index slid 6.14 to 1,628.23.

The yen closed at 122.80 against a dollar.

Panasonic Corporation gained 1% to 1,714 yen after the diversified company’s Healthcare unit agreed Wednesday to acquire the diabetes devices business of Germany-based conglomerate Bayer AG for about €1.02 billion or $1.16 billion or about 138 billion yen.

The transaction is expects to close in the first-quarter of next year.

Tokio Marine Holdings Inc slipped 0.9% to 4,905 yen after the insurance company agreed to acquire the U.S.-based specialty insurer HCC Insurance Holdings, Inc for $78 a share in cash, a premium of 35.8% to closing price of June 9.

The total transaction, valued at about $7.5 billion, is expected to close in the fourth-quarter.

Market indexes on Dalal Street surged after domestic mutual funds looked for value and snapped up consumer goods makers, pharmaceuticals and export sensitive stocks.

Sugar mills jump after the Cabinet approved interest-free loans of ₹6,000 crore to sugar companies. Bajaj Hindusthan Sugar, Balrampur Chini Mills and Shree Renuka Sugars advanced between 3% and 10%.

Rupee strengthened 9 paisa to 63.84 against one U.S. dollar.

The Sensex Index advanced 359.25 or 1.4% to close at 26,840.50. The CNX Nifty increased 102.05 or 1.3% to 8,124.45.

Indian government bond yield rose to a 6-month high and 10-year bond yield rose 2 basis points to 7.99%. The yields have been rising for the last two weeks on the inflation worries.