American and European stocks jumped on Wednesday due to strong earnings reports of Google Inc and IBM. Debt ceiling extension possibilities also helped in further strengthening the condition of markets. Technology related shares were a top point of focus as Apple’s results are due on the day while Google and IBM have already released their solid results.
In forex markets, Yen that was going weaker from several months against dollar, rose in the second consecutive day against USD after Bank of Japan raised it’s inflation target to 2%. On Monday BOJ announced that it has raised it’s inflation target to 2% but will buy assets only in 2014, which somewhat disappointed the market. In the past 2-3 days yen has risen by 1.9 percent against dollar, which is the biggest three days gain in recent 7 months. However, it is still 11% behind from it’s mid-November performance. Dollar fell down by 0.1% against Yen reaching the 88.58 yen mark.
Euro also edged higher against dollar as sentiment for euro zone assets improved and investors showed enough interest in repaying the part of loans they took last year from European Central Bank. It was surely an evidence of a recovery of Portugal’s bond market. Portugal’s first bond sale on Wednesday since 2011 rescue attained stronger demand. It further strengthened the hopes that country can generate a full return from the market that will ultimately allow it to demand more support from European Central Bank.
IBM shares went 5.1% higher on the day after company announced better than expected earnings report on Tuesday. As a result, Dow Jones Industrial Index went up by 53.99 points or 0.39% and touched the mark of 13,766.20 points. S&P 500 Index was down by 0.1% or 0.20 points with 1492.36 points. NASDAQ Composite Index was up by 0.28% or 8.85 points at the mark of 3152.03 points.
MCSI Index of global markets was down by 0.13 percent while Europe’s FTSEurofirst 300 Index was up by 0.2%, which is a 22-month high mark. DAX of Germany which is fairly closer to it’s 4 years high, was up by 0.15 percent while FTSE 100 Index of Britain gained by 0.3 percent.
Some money also shifted to stocks on Wednesday from Treasuries. Treasuries which are not much appealing to investors due to low yields were primary source of that money.