Global shares and oil prices bounce back on U.S. Budget talks

Posted by Lacee Page January 29, 2013 0 Comment 379 views

World Equity shares and Oil prices bounced back on Friday due to U.S. budget talks. When republicans said that they will do something for preventing the budget impasse, the market took a sigh of relief. In the meantime, Yen slipped to the lowest level of 31 months against dollar due to potential assets purchases done by Bank of Japan.

When Republicans said that they will consider a bill for raising the debt ceiling enough to pay the debts and bills of the country for another 3 months, entire market celebrated their decision. Dow Jones and S&P touched their 5 year high marks. This strategy will provide enough time to government for passing a budget plan that will shrink the federal deficit.

However, unlike Dow Jones and S&P, NASDAQ closed a little bit lower, probably because of Intel’s weak earnings report. Shares of world’s largest chip maker fell down by 6.3% and touched the mark of $21.25 per share after the company revealed it’s earning outlook. The earnings report released by the company was well below than the estimates of analysts, and company also announced plans of increasing capital spendings on the same time. In an era when PC market is going down significantly, the company’s plans of increasing capital spending were a little bit weird for investors. As a result, a decline of 6.3% was noted on the end of the day.

On the other hand, DJI and S&P earned good chunks on Friday. DJI closed 0.39% higher and bounced by 53.68 points, closing at 13,649.70. S&P 500 also rose by 0.34% or 5.04 points and reached the mark of 1485.98. NASDAQ fell down by 0.4% and closed 1.30 points lower at 3,134.71 points.

For the entire week, Dow Jones gained 1.2%, S&P 500 gained 0.9% and NASDAQ gained 0.3%.

Outside the world of Wall Street, MCSI touched it’s 8 month high mark and went up by 0.25% at 351. 90 points. Gold also enjoyed on the day and retreated by $2.87, reaching the price of $1684.30 per ounce.

In the oil market, Brent Crude rose by 79 cents and settled at $111.89 per barrel. In the meantime, U.S. oil went 7 cents higher at $95.56 per barrel.

About Lacee Page

Lacee Page is our White House and political campaign reporter. Lacee also covers justice and national law enforcement issues and congressional reporter focusing on the outputs of the legislative process: government spending, agency regulation and congressional oversight. Lacee received a national Edward R. Murrow for spot news award and the regional Associated Press award for best newscast. Lacee attended Riverview High School near Coshocton, and graduated from Ashland College in Ashland, Ohio with a Bachelor of Arts degree in Communications.

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