Financial Sector Led Rally in Wall Street as Global Stocks Peaked to Highest Level
Wall Streel indexes continued to be in the positive territory as financial sector was leading the rally and catching up the gain. While global stock market also climbed to the highest level recorded since December last year.
Wall Street Journal reported that financial sector in S&P 500 index continued to rise for five consecutive session, leading the index to raise less than 0.1% or 0.36 points to 2082.78. While Dow Jones Industrial Average climbed 0.1% to 17926.43 after gaining 18.15 points, and Nasdaq Composite Index slipped to 4945.89 losing 1.53 points.
Financials sector in S&P 500 made a 0.3% gain as investors responded to the snapshot earning from large U.S. banks. Driving the underperformed sector to catch up and lead the rally in S&P 500. Bank of America gained 2.5% to $14.14, while JP Morgan Chase climbed 1.3%, to 62.59, after its a better-than-expected results spurred the rally in financial shares.
Managing director in equity trading at Credit Suisse Rob Bernstone said, "When you get sectors that have been underperforming catching up, that speaks to the overall breadth of the market."
As better than expected results from JP Morgan Chase triggered rally in Wall Street. The Guardian reported that European stocks also responded well. FTSE 100 closed 120.5 points higher or 1.93% to 6362.89, recording the highest level since December last year.
Germany's DAC index climbed 2.71% to 10,026.10, followed by Spain's Ibex which was closed 3.21% higher at 8820.7. While France's Cac and Italy's FTSE MIB gained 3.32% and 4.13 higher respectively. As Cac closed at 4490.31, while FTSE MIB at 18,165.59.
In Asia, Business Insider reported indexes around the continent were also surging on Thursday. Japan's benchmark Nikkei 225 added 2.5% to 16,788.28, Hong Kong's Hang Seng also jumped 0.8% to 21,326.90, while the Shanghai Composite index was up 0.3% at 3,076.16. South Korea's KOSPI followed suit to climb 12% reaching 2,004.08 and Australia's S&P/ASX 200 gained 0.8% to close at 5,168.60.
The solid gains for the second day verified that China's economy is on track to its recovery. Chief market strategist at CMC Markets Michael McCarthy also affirmed the recovery. He said the strong data in China's trade and rallies in Wall Street have strengthened the global market on Thursday.
McCarthy said, "Overnight action confirms that China trade data released yesterday is a game changer. Strong continuations of commodity and US share rallies, and a melt-up on continental bourses, have futures traders expecting further strength in Asia Pacific shares in trading today."
Wall Streel indexes continued to stay in the positive territory as financial sector was catching up. JP Morgan Chase led the rally as the lender reported a better than expected result. Global stock market responded well with the U.S. rally, climbing to the highest level last seen in December.