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| Global shares rally on German data, weak yen | Global shares rally on German data, weak yen |
| (35 minutes later) | |
| Global shares rallied Tuesday on strong German factory data and as Japanese stocks jumped past a level last seen five years ago. | Global shares rallied Tuesday on strong German factory data and as Japanese stocks jumped past a level last seen five years ago. |
| Japan's Nikkei-225 index rose above 14,000 for the first time since mid-2008 as government efforts to weaken the yen boosted exporters. | Japan's Nikkei-225 index rose above 14,000 for the first time since mid-2008 as government efforts to weaken the yen boosted exporters. |
| Germany's Dax hit a fresh record high, the FTSE 100 was up 0.6% and France's Cac 40 rose 0.7% . | Germany's Dax hit a fresh record high, the FTSE 100 was up 0.6% and France's Cac 40 rose 0.7% . |
| Wall Street opened up 0.2% after last week's strong non-farm payrolls data. | Wall Street opened up 0.2% after last week's strong non-farm payrolls data. |
| Exporters gain | Exporters gain |
| The 3.6% rise in Japanese shares came as investors returned from a three-day weekend. | The 3.6% rise in Japanese shares came as investors returned from a three-day weekend. |
| "Japanese investors returned from Golden Week national holidays in buoyant mood, bidding stocks in the Nikkei 225 average to their highest since mid-2008," said Andrew Wilkinson, chief economic strategist at Miller Tabak. | "Japanese investors returned from Golden Week national holidays in buoyant mood, bidding stocks in the Nikkei 225 average to their highest since mid-2008," said Andrew Wilkinson, chief economic strategist at Miller Tabak. |
| Japanese shares have rallied since the Bank of Japan announced new measures to pump liquidity into the financial system in an effort to get the country out of two decades of deflation. | Japanese shares have rallied since the Bank of Japan announced new measures to pump liquidity into the financial system in an effort to get the country out of two decades of deflation. |
| That has weakened the yen against other currencies. The Japanese currency has fallen 15% against the dollar, making exporters more competitive as their products are cheaper when sold overseas. | That has weakened the yen against other currencies. The Japanese currency has fallen 15% against the dollar, making exporters more competitive as their products are cheaper when sold overseas. |
| For every yen that drops against the dollar, Toyota, for example, says its annual operating profit rises by 35bn yen (£230m). The dollar was trading at 99.21 yen in afternoon trading. | |
| Orders, bank profits and bond sale | Orders, bank profits and bond sale |
| Germany's Dax was 1% higher and hit a new record of 8,195 after surprisingly strong industrial orders figures for March. | Germany's Dax was 1% higher and hit a new record of 8,195 after surprisingly strong industrial orders figures for March. |
| Orders for goods grew 2.2% in March compared with the previous month. February's level was revised down 0.1 percentage points, but still showed a 2.2% rise. | Orders for goods grew 2.2% in March compared with the previous month. February's level was revised down 0.1 percentage points, but still showed a 2.2% rise. |
| "Today, it is really difficult not to use superlatives for describing the latest German new orders data," said Andreas Rees, chief German economist at UniCredit Research. | "Today, it is really difficult not to use superlatives for describing the latest German new orders data," said Andreas Rees, chief German economist at UniCredit Research. |
| Elsewhere the FTSE was up after HSBC, Europe's biggest bank by market value, said profits more than doubled in the first quarter as it benefited from recent restructuring efforts, and booked less bad loans. | Elsewhere the FTSE was up after HSBC, Europe's biggest bank by market value, said profits more than doubled in the first quarter as it benefited from recent restructuring efforts, and booked less bad loans. |
| In France, investors welcomed announcements of additional cost-cutting efforts by Societe Generale and Credit Agricole to boost their bottom line. | In France, investors welcomed announcements of additional cost-cutting efforts by Societe Generale and Credit Agricole to boost their bottom line. |
| Market sentiment in Europe was also lifted after Portugal issued 10-year government bonds for the first time since it received a bailout two years ago, which represented a milestone in its efforts to regain investor confidence. | Market sentiment in Europe was also lifted after Portugal issued 10-year government bonds for the first time since it received a bailout two years ago, which represented a milestone in its efforts to regain investor confidence. |
| European Central Bank policymaker Yves Mersch called the bond issuance an "enormous success", while Foreign Minister Paulo Portas said that the bond sale was evidence that the government's economic reforms are working. | European Central Bank policymaker Yves Mersch called the bond issuance an "enormous success", while Foreign Minister Paulo Portas said that the bond sale was evidence that the government's economic reforms are working. |
| Yields fell to around 5.5%, lower than 7% which is considered to be economically unsustainable for a country to repay its debts in the long term. | Yields fell to around 5.5%, lower than 7% which is considered to be economically unsustainable for a country to repay its debts in the long term. |
| US rally | US rally |
| In the US the Dow Jones Industrial Average was up 15 points at 14,985 while the S&P 500 index gained a point to 1,618, or 0.07%. | In the US the Dow Jones Industrial Average was up 15 points at 14,985 while the S&P 500 index gained a point to 1,618, or 0.07%. |
| Markets were buoyed by strong jobs data last week and some positive earnings results by accessories retailer Fossil Inc and Direct TV. | Markets were buoyed by strong jobs data last week and some positive earnings results by accessories retailer Fossil Inc and Direct TV. |
| Markets were also anticipating Disney's quarterly results after the market closes. | Markets were also anticipating Disney's quarterly results after the market closes. |
| Its shares have risen in recent days after Disney's Marvel Studios raked in $174.1m during the opening weekend for "Iron Man 3" and announced a venture with Electronic Arts to develop new video games based on Star Wars themes. | Its shares have risen in recent days after Disney's Marvel Studios raked in $174.1m during the opening weekend for "Iron Man 3" and announced a venture with Electronic Arts to develop new video games based on Star Wars themes. |
| Standard and Poor's 500 index broke through 1,600 on Friday for the first time and is up 13.5% this year. The Dow is 14.4% higher. | Standard and Poor's 500 index broke through 1,600 on Friday for the first time and is up 13.5% this year. The Dow is 14.4% higher. |