US stocks rebound as consumer companies and banks rise

US stocks rebound as consumer companies and banks rise

“Wall Street was right to worry about Deutsche Bank, but yesterday was a bit of an over reaction, and we’re walking back a little bit today”, said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

USA stocks are bouncing back Friday morning after a steep loss late the previous day. Procter & Gamble rose 1.4 percent, the biggest gain in the Dow Jones industrial average.

Deutsche Bank was under the cosh again following reports late on Thursday that a number of key funds had withdrawn money from the German lender, which now faces a $14bn fine from the US Department of Justice for mis-selling mortgage-backed securities.

But it rebounded to hit a one-week high of 1.09135 francs at 0958 GMT, rising 0.4 percent in a matter of minutes.

European markets closed mixed: London’s FTSE gained 1.0 per cent, Paris added 0.3 per cent and Frankfurt down 0.3 per cent.

But the S&P 500 finished down 0.9 percent at 2,151.13.

The dollar also climbed 1 percent to a 9-day high of 0.9770 francs CHF=, having hit a one-month low on Thursday.

BONDS: Bond prices fell.

The S&P 500 financial index .SPSY dropped 1.11 percent after Bloomberg reported that some hedge funds have withdrawn excess cash and positions held at the German lender. Hess jumped 87 cents, or 1.7 percent, to $53.02 and Spectra Energy rose 67 cents, or 1.6 percent, to $42.99. The company has sold off several brands to focus on product lines like Chef Boyardee and Hebrew National, and it’s getting ready to split into two companies. China’s Shanghai Composite Index was up 0.3 percent to 3,005.86. The Victorian property has sold for $51.5 million, with Abacus including a vendor financing deal of 7 percent per annum.

The share price of the company (DTEGY) was down -0.89%, with a high of 16.89 during the day and the volume of Deutsche Telekom shares traded was 751925.

Among the top gainers, housebuilding stocks Barratt Developments and Persimmon rose more than 4 percent with analysts citing a supportive broker note from Liberum, as well as data from Nationwide which showed that house prices continued to rise in September, albeit at a slower rate than in August.

OIL: Benchmark U.S. crude rose 35 cents to $48.17 per barrel in NY. The euro remained at $1.1216.

In Tokyo, the dollar rose to 101.23 yen from 101.04 yen in NY late Thursday, while it also strengthened against riskier emerging currencies including the Indonesian rupiah, Thai baht and Malaysian ringgit. Major indexes in Asia slumped on concerns about the banking industry. Merck fell $1.31, or 2.1 percent, to $61.99.

The technology index was up 0.43%, helped by Apple’s 0.7% rise. You have now viewed your allowance of free articles.

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