Global Stock Market Review

S&P 500 Index

U.S. equities edged higher after pairing their biggest loss this year on higher than expected profits. The S&P 500 index advanced 1% to 1,511.29 after slipping as much as 1.2% on Monday amid growing concerns about the European debt crisis. All ten groups in the benchmark gauge rose at least 0.2%. Computer Sciences Corporation jumped 9.2%, the most in the index, and led gains in the best performing technology sector that was 1.4% up after raising the company’s profit forecast for this year. Furthermore, GameStop Corporation climbed 6.2% to $26.81 to pace an increase in the consumer services group, while Estee Lauder Companies rallied 6% to $64.71 after the Mac and Clinique cosmetics maker upgraded its earnings forecast for 2013 to $2.59 per share. Meanwhile, among worst performers was McGraw—Hill dropped 11% to $44.92 extending its yesterdays losses on announcement about a legal lawsuit that is seeking penalties of $5 billion for artificially raised credit ratings. Moody’s Corporation declined 6.2% adding to its yesterday losses to cap further gains in financial shares.

Dow Jones Industrial Average

Most of the U.S. blue chips advanced on Tuesday rebounding from their decline earlier this week, as corporate profits topped the analysts’ estimates and Dell Inc. decided to be taken private. Dell’s CEO Michael Dell and Silver Lake Management LLC agreed on buying the PC maker. The Dow Jones Industrial Average rose 0.7%, or 99.22 points, to 13,979.30. All but one sector in the index edged lower, while only two blue chip companies declined. International Business Machines Corporation erased 0.5% to $ 202.79 to pace losses in technology shares that were 0.08% down, while the decrease in United Technologies that slid 0.3% capped further gains in industrial shares that increased as much as 0.4%. Alongside to that, UnitedHealth Group Inc. gained the most in the gauge with a 3.6% increase adding to gains in the best performing health care group that jumped as much as 1.76%. Furthermore, Bank of America advanced 3.5% to $11.88 contributing to a 1.73% rise in financial shares, whereas Hewlett-Packard Co capped further losses in technology group with a 2.7% surge.

Nikkei 225 Index

Japanese equities advanced, sending the Nikkei 225 Stock Average to its highest level since 2008 on speculation Masaaki Shirakawa, the governor of BOJ, announced he will step down earlier than scheduled. The Nikkei 225 advanced 3.8% to 11,463.75, its highest level in more than four years. All ten groups in the benchmark jumped at least 2%. All ten groups in the benchmark gauge rose at least 2% with consumer goods posting the biggest gain of 4.2%. Among best performers was Toyo Seikan Kaisha Ltd jumped 17%, the most in the index, after the packaging products maker raised its profit forecast by 60%. Furthermore, Mitsui Engineering & Shipbuilding followed with a 12% increase, while Mitsubishi Heavy Industries rose 10.4% to 533 yen, the highest level since September 2008 after the maker of heavy equipment announced it aims at turning a profit on Boeing’s Dreamliner production. Meanwhile, among worst performers was Mitsubishi Motors Corporation with its shares tumbling 2.5% to 115 yen to cap further gains in the consumer goods group and Toyobo that lost 2.2%.

Hang Seng Index

Hong Kong stocks rebounded from their losses yesterday on strength in China Mobile shares. The Hang Seng index rose 0.5% to 23,256.9 points after falling as much as 2.3% on Tuesday. All but one group in the benchmark index surged at least 0.2%. AIA Group Ltd, a provider of financial and insurance services, rallied 2.7%, the most in the index, to pace gains in financial shares that were 0.5% up. Wharf Holdings followed with a 2.1% surge and Hang Seng Bank posted a 2% gain both also adding to the increase in financial group. Alongside to that, Sands China Ltd paired biggest losses among all blue chip companies, as its shares lost 5.2% to close at $36.30 and prompted a decline in the consumer services group that was 2.6% down. Furthermore, China Resources Power Power Holdings erased as much as 3% to HK$22.35 to cap further gains in utilities that advanced 0.6%, followed by China Overseas Land & Investment Ltd. that inched 2.8% lower, halting further gains in financial stocks.

FTSE 100 Index

U.K. equities stayed little changed, halting earlier gains on speculation the political instability in Italy and Spain might induce the euro area’s sovereign –debt crisis. The FTSE index slid 0.1%, or 4.06 points, to 6,279.18 by 4:24 p.m. in London after earlier rising 0.6%. Four out of ten groups in the benchmark index declined with technology shares tumbling the most by 0.84%. Among best performers was Hargreaves Lansdown Plc that jumped 10% to 8.09 pounds to cap further losses in financial group, while Eurasian Natural Resources Corporation climbed 8.9% to its highest price in four months on iron ore and ferrochrome output that topped forecasts. Furthermore, the luxury goods maker Burberry Group Plc. added 2.7% and contributed to an increase in consumer services that were 0.35% up. Alongside to that, Aviva Plc., an international insurance company, paired biggest losses in the index as it tumbled 1.9% and added to losses in financial shares that eased 0.25%. Unilever followed with a 1.2% decline and dragged down consumer goods group that erased 0.3%, while Rexam slid 1.2%, capping gains in industrials.

DAX Index

European stocks extended their losses on Wednesday on disappointing results in the earning season pairing with political conflict between France and Germany over the single currency exchange rate. The DAX index dropped 0.1%, or 77.61 points, to 7,590.12 by 17:19 p.m. in Frankfurt. All but one group in the benchmark index inched lower. Merck KGaA paired biggest losses as it fell as much as 2.1% to 99 euros adding to a decline in the health care shares that were 2% down, second biggest drop in the index. Among worst performers was also Bayer an d Fresenius SE & Co both contributing do a decrease in health care shares. Only four blue chip companies listed in the index advanced with Deutsche Lufthansa, a provider of passenger and cargo air transportation services, jumped 2.9% to pace gains in the consumer services group that rose 2.2%. Furthermore, Daimler AG climbed 1.4% to halt further decline in the consumer goods shares that erased 2.4%, while Deutsche Post added 0.4%, capping losses in industrials.

EXPLANATIONS

Indexes

• Standard & Poor's 500 Index (S&P 500) or (SPX) - U.S. stock market index consisting of the 500 large-cap shares widely traded on the New York Stock Exchange and the NASDAQ.

• Dow Jones Industrial Average Index (INDU) - U.S. stock market index consisting of the 30 large publicly owned U.S. companies , primarily industrials

• Hang Seng Index (HI) - Hong Kong’s stock market index consisting of 48 largest companies listed on the Hong Kong Exchange

• Japan’s Nikkei Stock Average (Nikkei 225 Index) or (NKY) - Japanese stock market index consisting of the 225 largest companies listed on Tokyo Stock Exchange

• FTSE 100 Index (UKX) - U.K. stock market index consisting of the 100 most capitalized U.K. companies trading on the London Stock Exchange

• DAX Index (DAX) - German stock market index consisting of the 30 largest and most liquid German companies trading on the Frankfurt Stock Exchange

Chart

• SMA (20) - Simple Moving Average of 20 periods;

• SMA (60) - Simple Moving Average of 60 periods.

• Correlation - a statistical measure of the linear relationship of two random variables. It is defined as the covariance divided by the standard deviation of two variables.

Indicators

• Industry performance - daily performance of industries within the particular stock market index

• Top performers - companies within the particular stock market index that showed best or worst daily performance

• Performance - relative historical change of stock market index value