US Close Podcast 17 Jan 19: US stocks advance on earnings, May survives confidence vote

US sharemarkets were firmer on Wednesday underpinned by a positive reaction to bank earnings results. Shares in Goldman Sachs rose 9.5% and Bank of America rose 7.2% after issuing better-thanexpected results. The Dow Jones index closed higher by 141 points or 0.6%, after being up 223 points in afternoon trade. The S&P500 index was up by 0.2%. The Nasdaq index was higher by 11 points or 0.2%

European sharemarkets were mixed with the UK market down due to the defeat of the Brexit vote and a stronger pound but mainland European markets were higher. Euro-zone banks rose more than 2% with investors betting that a 'no deal' Brexit was less likely. The pan-European STOXX600 index rose by 0.5%. The UK FTSE lost 0.5% while the German Dax index rose by 0.4%. In London trade, shares of Rio Tinto fell by 0.6% and BHP fell by 1.0%

 

This report is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank). The Bank and its subsidiaries have effected or may effect transactions for their own account in any investments or related investments referred to in this report. This report is not a recommendation to buy, sell or hold any securities or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual. For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice. This report is produced by Commonwealth Research based on information available at the time of publishing. We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness. To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this report.