China trade data boosts dollar, banks lead stocks higher

Wed Apr 13, 2016 4:55pm EDT
 
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By Rodrigo Campos

NEW YORK (Reuters) - The U.S. dollar rallied and major stock markets rose on Wednesday after JPMorgan's results beat lowered expectations and upbeat Chinese trade data offered hope Asia's biggest economy is stabilizing.

Wall Street gained after JPMorgan Chase's (JPM.N: Quote) first quarter earnings fell nearly 7 percent but beat expectations. The S&P 500 financial sector gained more than 2 percent, helping boost major averages.

"It's a positive that (JPMorgan) earnings were well received," said Michael O'Rourke, chief market strategist at JonesTrading in Greenwich, Connecticut. "It's just a quiet tape and there's not much going on, so it doesn't take much to create the move."

The Dow Jones industrial average .DJI rose 187.03 points, or 1.06 percent, to 17,908.28, the S&P 500 .SPX gained 20.7 points, or 1 percent, to 2,082.42 and the Nasdaq Composite .IXIC added 75.33 points, or 1.55 percent, to 4,947.42.

The MSCI All World Index .MIWD00000PUS gained 1.4 percent to end at a new high for 2016 and marking the first time it has closed in positive territory on the year.

The euro fell nearly 1 percent versus the greenback as signs of stronger Chinese economic growth boosted recently batted-down expectations that the Federal Reserve could raise interest rates again in the not-too-distant future.

China reported exports jumped 11.5 percent year on year in March, the first increase since June and well above market forecasts.

Europe's FTSEuroFirst index of leading 300 shares posted its biggest gain in a month, rising 2.6 percent to end at a three-week high near 1,350. Gains in equities in Europe were led by banks , which rose 6.3 percent, as investors welcomed assurances from Italy's economy minister that European authorities will not block the country's bank fund.   Continued...

 
People walk through the lobby of the London Stock Exchange in London, Britain August 25, 2015. REUTERS/Suzanne Plunkett