Asian investors cheered the ECB’s resolve to protect the euro, sending the region’s markets sharply higher. The Nikkei rallied 1.5% to 8567, and the Kospi surged 2.6% to 1829, as Samsung Electronics posted a 5.2% gain after reporting a record profit of $5.9 billion. The ASX 200 climbed 1.5% to 4210, and the Hang Seng advanced 2% to 19275. The Shanghai Composite did not participate in the rally, inching up a mere .1%.
European leaders from France and Germany reinforced the the ECB’s resolve to protect the euro, helping to lift markets for a second day. The CAC40 outperformed, jumping 2.3% to 3280. The DAX rallied 1.6% to 6689, and the FTSE gained 1% to 5627.
Facebook shares tumbled 11.75 to 23.70 after reporting a slowdown in growth. The company failed to issue an outlook, raising eyebrows.
Starbucks shares tanked 9.4% after cutting its outlook and missing profit forecasts.
Treasuries and Commodities
Bonds skidded as money flowed out of safety and into risk. 10-year notes fell 1 point to yield 1.55%, and 30-year notes plunged 2 23/32 to yield 2.63%.
Gasoline futures outperformed in the energy sector, advancing 2.6% to 2.8878. Crude oil gained .8% to 90.13, while natural gas slumped 2.4% to 3.015.
Copper led metals higher, adding .9% to 3.426. Gold and silver rose .2% to 1618 and 27.498 respectively.
The Dollar fell for a second day, but this time the rally was led by commodity currencies. The Australian Dollar and Canadian Dollar both climbed .7%. The Pound and Euro rose .4%, and the Swiss Franc ticked up .3%. The Yen declined .4% to 78.51, joining in the flight to risk.
GDP was in line with estimates, showing a growth rate of 1.5% for the second quarter. Consumer sentiment rose slightly to 72.3 from last month’s 72.0 reading.
Monday’s sole report will be the Dallas Fed manufacturing survey. Earnings are due from CIT Group, Dendreon and Loews.