World Markets Trade Higher in Cautious Trading

Nichole Harper
26 Nov, 2015
New York City

European and Asian indexes closed higher in cautious trading and markets in New York were closed for Thanksgiving. Crude oil and commodities staged a mild rebound and investors in Europe anticipated another round of stimulus as early as next week.

[R][1:20 PM New York City, New York – European and Asian indexes closed higher in cautious trading and markets in New York were closed for Thanksgiving. Crude oil and commodities staged a mild rebound and investors in Europe anticipated another round of stimulus as early as next week.[/R]

Stocks in Europe and Asia traded mixed and markets were closed in New York for Thanksgiving.

European markets traded higher on the rising expectations of new stimulus measures and in Japan gained as the yen weakened further.

European Markets

European markets rose on Thursday, fueled by anticipation for ECB action in December, an upbeat quarterly report from chipmaker Infineon, and a rebound in base metal prices that boosted mining stocks.

The euro hit seven-month low against the dollar at a buy price of $1.0613 on the rising expectations that the European Central Bank may expand its bond-buying program.

Infineon Technologies soared 12% after the chipmaker reported better-than-expected quarterly results.

Rally in Infineon lifted the chip-making sector stocks, with STMicroelectronics up 4.7% and Dialog Semiconductor gaining 5.2%.

Mining stocks advanced on the back of recovering base metal prices.

The price of copper increased by approximately 3% on reports that China may be considering short-selling copper and other metals.

Antofagasta increased 3.3%, Anglo American gained 2.8%, and Fresnillo jumped 3%.

In London trading, FTSE 100 index gained 46.50 or 0.7% to 6,383.93 and in Frankfurt the DAX index increased 170.49 or 1.5% to 11,341.05.

In Paris, CAC 40 index jumped 60.77 or 1.2% to 4,952.37.

Infineon Technologies AG jumped nearly 14% after the semiconductor maker reported double-digit growth in both revenues and net profit, helped by the recent acquisition of International Rectifier and one-time tax gain.

In the September quarter, net profit rose 80% to €325 million ahead of expectations of net profit of about €160 million.

Revenue increased 36% to €1.60 billion in comparison with the same period a year ago.

Infineon estimated revenue growth of 11% to 15% for the current fiscal year.

The company proposes a dividend increase to €0.20 per share, ahead of expectations.

On the negative side, shares of BHP Billiton Ltd. fell 3% after the mining giant had to deny claims of the United Nations that that the mud in the Brazil dam disaster is toxic.

Shares of Rémy Cointreau SA RCO fell 2.1% after the French liquor maker said first-half profit increased due to weakness in the euro.

Without the exchange rate gains, the profit declined by 8% and sales fell by 6%.

Asian Markets

Market averages in Tokyo closed higher in quiet trading with the U.S. market closed for Thanksgiving holiday.

The makers of LCD display panels traded lower after a Nikkei business daily reported that Apple Inc plans to introduce next version of organic light-emitting diode displays for its popular iPhones in 2018.

The Nikkei 225 Stock Average increased 96.83 or 0.5% to 19,944.41 and the broader Topix index rose 7.65 to 1,602.32.

The yen weakened to 122.57 against a dollar.

SoftBank Group Corp slipped 0.8% to 6,535 yen after the communication services provider issued its 48th unsecured straight corporate bond and plans to raise as much as 370 billion yen at interest rate of 2.13% a year.

The subscription is scheduled to open tomorrow and end on December 9.

Stocks on Dalal Street advanced and the Sensex Index closed higher led by a surge in resource stocks.

The metal and mining stocks traded higher after international prices of copper rose and crude oil rebounded on the rising tensions between Russia and Turkey.

Jindal Steel and Power soared 6.7%, Hindalco Industries advanced 2.2% and Hindustan Copper jumped 2.6%.

Vedanta increased 1.2%, Tata Steel rose 2.4% and Hindustan Zinc gained 1.2%.

Rupee weakened 24 paisa to 66.56 against one U.S. dollar.

The Sensex Index advanced 182.89 or 0.7% to close at 25,958.63. The CNX Nifty increased 52.20 or 0.7% to 7,883.80.

L&T secured two orders worth $200 million in November.

Idea Cellular agreed to buy wireless spectrum from Videocon in the Uttar Pradesh and Gujarat circles for ₹3,310 crore or $501 million.