US Close 13 Jul 16: Record close on the S&P 500 as momentum builds for stocks

US sharemarkets rallied on Tuesday with the S&P 500 and Dow Jones closing at record highs. Alcoa shares rose by 5.2% after reporting better-than-expected earnings after the close of the prior session. The S&P material sector rose +1.8% while the energy sector rose by 2.2%. The Dow Jones index rose by 121 points or 0.7%. The S&P 500 index rose by 0.7% while the Nasdaq rose by 34 points or 0.7%.

European shares rose for a fourth straight session on Tuesday. Italian bank stocks outperformed on expectations a deal could be reached with the European Central Bank to tackle their bad debts. The STOXX Europe 600 Banking index rose by 1.1% helped by the surge in Italian bank UniCredit (+13.5%). The auto industry rose 3.8% after carmaker Daimler (+4.4%) reported second quarter results that beat expectations. The FTSEurofirst 300 index rose by 1.1%, the German Dax rose 1.3%, while the UK FTSE was virtually flat, down just 2 points. In London trade, shares in BHP Billiton rose 1.1% while Rio Tinto rose 1.7%.

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