Markets Rise on Easing Oil Prices

08 Apr, 2005
New York City

Indexes across Europe and Asia rose after the U.S. rally overnight and a drop in crude oil prices. Fed chief is expected to speak on consumer finance later in the day.

Indexes across Europe and Asia rose after the U.S. rally overnight and a drop in crude oil prices. Fed chief is expected to speak on consumer finance later in the day.

The dollar traded higher against the euro and the yen.

Upbeat Japanese economic data raised hopes for a brighter economic outlook in the country’s key export markets. Japanese core machinery orders rose 4.9% in February from the previous month, more than economists had predicted. Orders fell 2.2% in January and 8.8% in December.

Tech stocks rose buoyed by a rise on Wall Street overnight. Automakers and banks also did well. Gainers included Toshiba Corp., Nissan Motor Co. and Mazda Motor Corp., Mitsubishi Tokyo Financial Group and UFJ Holdings Inc.

LG Electronics jumped 3.1%, ahead of its first quarter results next Monday. Analysts foresee an operating loss, but they are more upbeat on the current quarter.

In the U.S., Federal Reserve chairman Alan Greenspan is scheduled to speak on consumer finance later in the day.

Shares of Emulex Corp. (ELX) surged in after-hours trade Thursday after the data storage company raised its third-quarter earnings and revenue forecast.

At the same time investors reacted negatively to warnings from Ariba Inc. (ARBA), Borland Software (BORL) and Magma Design Automation (LAVA). Shares lost ground after companies lowered earnings forecasts.

Media companies Time Warner Inc. (TWX) and Comcast Corp. (CMCSA) have reached a tentative agreement to buy bankrupt cable operator Adelphia Communications Corp. for nearly $18 billion, according to newspaper reports.

Adelphia was unchanged at 25 cents yesterday.

Financial services provider Accenture Ltd. (ACN) reported a 70% rise in second-quarter earnings to $209.8 million, or 35 cents a share, compared with $123.1 million or 22 cents a share a year ago.

Shares rose 3.9% to $25.85 after the bell, but closed down 9 cents to $24.89 in the regular session.