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Market Update

Nasdaq Rises 1% Following Global Advance Despite Developing Chaos in Iraq


Author: Nichole Harper
ticker.com
Last Update: 11:50 AM ET August 11 2014

11:45 AM New York – Global markets powered ahead despite the fast developing chaos in Iraq, persistent military overreach by Israel and simmering tensions on the Ukraine border. China said inflation index increased 2.3%. Prime Minister Recep Tayyip Erdogan won the first direct presidential election in Turkey.

Global stocks rose for the first time after two weeks of doldrums but geopolitical tensions remained high.

Iraq was in central focus for the second week in a row after U.S. air strikes led the push back of Islamists rebels and President Barack Obama asked a new government to be formed replacing defiant Prime Minister Nuri Kamal al-Maliki.

Iraq’s president nominated Haider al-Abadi and the newly chosen prime minister has 30 days to form a new government, however it is not clear if Mr Maliki is willing to relinquish power after a forceful speech late night against the new appointment.

Russia ended military exercise near the border with Ukraine where rebels are continuing their struggle to split away and conflict between Israel continued its bombing campaign in occupied Gaza strip.

S&P 500 index increased 12.67 or 0.7% to 1,944.22 and the Nasdaq Composite Index advanced 1% or 42.91 to 4,413.60.

European Markets

European markets advanced after tensions on the Russia and Ukraine borders eased and Russia ended military exercise.

However, Ukraine demanded rebels to surrender and the government consider banning transporting of Russian crude oil.

In London trading, FTSE 100 index increased 1% or 66.42 to 6,633.78 and in Frankfurt the DAX index climbed 1.9% or 167.51 to 9,176.83.

In Paris, CAC 40 index jumped 1.2% or 48.70 to 4,196.51.

Balfour Beatty net narrowed to £27 million and rejected a revised merger proposal from Carillion. Banco Popolare Societa net swung to profit €25 million. BMW said July Sales jumped 3.6% and worldwide sales soared 8%. Bilfinger profit plunged 19% to €55 million.

Asian Markets

Stocks in Tokyo surged after pension fund controlled by Japanese government relaxed its limits for adding equities but held the target for the risky assets.

The surprise and earlier than expected change in the stance of the pension fund surprised the market and investors bid up stocks.

Health Ministry of Japan confirmed the report and added that deviation limits to risky assets were revised at the beginning of the fiscal year and formal change in target asset allocation is expected to be revised in September.

The GPIF, the pension fund, is expected to increase its target equity asset allocation to 20% from the current 12%.

The Nikkei 225 Stock Average climbed 352.15 or 2.4% to 15,130.52 and the broader Topix index jumped 24.25 or 1.9% to 1,252.51.

The yen closed at 102.07 against one U.S. dollar.

In Mumbai trading, the Sensex Index jumped 190.10 or 0.7% to close at 25,519.24 The CNX Nifty increased 57.40 to 7,625.95.

Over the weekend, China reported consumer price index increased 2.3% from a year ago in July, well within the target range established by the central bank. On a monthly basis inflation index increased 0.1%.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc