May 19, 2013
Global shares bounce back on hope for 'cliff' solution
US stocks rebounded from early losses today after Republican House Speaker John Boehner said he would keep working on a solution to the "fiscal cliff" while also slamming President Barack Obama's approach to budget talks.
The Dow Jones industrial average gained 59.75 points, or 0.45 percent, to 13,311.72 at the close. The S&P 500 rose 7.88 points, or 0.55 percent, to 1,443.69. The Nasdaq Composite climbed 6.02 points, or 0.20 percent, to 3,050.39.
European shares stuttered today as indexes approached overbought levels and budget talks in the United States stalled, with cruise operator Carnival plunging 6 percent on concerns about its earnings outlook.
The FTSEurofirst 300 closed 0.67 of a point higher at 1,142.80, trading in a tight four-point range all session, with its 14-day relative strength index (RSI) - a widely-used technical momentum indicator - at 67.5, where 70 and above are considered as 'overbought'.
Japan's Nikkei average dropped in active trade after the central bank's third dose of monetary stimulus disappointed the market and triggered profit-taking, although the index managed to end above 10,000.
The Nikkei shed 1.2 percent to 10,039.33, after surging 2.4 percent on the previous day to 10,160.40, logging its biggest one-day percentage rise since September 2011.
The Nikkei has rallied 15.9 percent over the past five weeks, taking its year-to-date gain to 18.7 percent, ahead of a 14.2 percent rise in the US S&P 500 and a 15.2 percent gain in the pan-European STOXX Europe 600.