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Thursday 4 April 2013

U.S. stocks opened higher on Thursday, despite the release of disappointing U.S. jobless data and following downbeat comments by European Central Bank President Mario Draghi. 

During early U.S. trade, the Dow Jones Industrial Average added 0.16%, the S&P 500 index edged up 0.13%, while the Nasdaq Composite index eased up 0.01%. 

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending March 30 rose by 28,000 to a seasonally adjusted 385,000, hitting a 16-week high, compared to expectations for an decrease of 7,000 to 350,000.

Jobless claims for the preceding week rose by an unrevised 357,000. 

Meanwhile, ECB President Draghi voiced concern over the euro zone’s economic outlook, saying that the recovery in the second half of the year is subject to “downside risks”.

Draghi’s comments came after the ECB left rates on hold at a record low 0.75%. 

Global stocks found support earlier, after the Bank of Japan, under newly appointed Governor Haruhiko Kuroda, said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases. 

In the tech sector, Apple shares added 0.31%, even as Samsung Electronics said it will staff mini-stores at Best Buy's U.S. locations to showcase how its tablets, smartphones and televisions work together. 

Among software-linked companies, Google tumbled 1.12%, as it was reportedly preparing to challenge a demand by the U.S. government for private user information in a national security probe. 

Facebook was on the upside, jumping 1.18%, amid reports it will unveil a new Android product. 

Meanwhile, financial stocks were broadly higher, as shares in Goldman Sachs rose 0.29% and Bank of America gained 0.34%, while Goldman Sachs and JP Morgan climbed 0.47% and 0.49% respectively. 

Bloomberg reported earlier that Matthew Taylor, a former Goldman Sachs trader, pleaded guilty to concealing an unauthorized USD8.3 billion trading position in 2007, causing the bank to lose USD118 million. 

Separately, Bank of America and Citigroup were said to have selected new managers to help run the firms’ rates-trading desks. 

Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 added 0.13%, France’s CAC 40 slipped 0.11%, Germany's DAX inched up 0.01%, while Britain's FTSE 100 declined 0.78%. 

During the Asian trading session, Japan’s Nikkei 225 Index surged 3.23%, while markets in Hong Kong and mainland China remained closed for a public holiday. 

Later in the day, Federal Reserve Chairman Ben Bernanke was to speak.
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