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May 12, 2018 10:56 AM IST | Source: Moneycontrol.com

Global indices rally for the week with US markets clocking 2% gain, Europe up for 7th straight week

For the week, the Dow rose 2.3 percent, the S&P 500 added 2.4 percent, and the Nasdaq climbed 2.7 percent.

Sandip Das @Im_Sandip1

The Nifty managed to clock 10,800 during the session and closed above the psychological mark. At the close of market hours, the Sensex was up 289.52

points at 35535.79, while the Nifty was up 90.00 points at 10806.50.

Indian markets posted gains in the week gone by, ignoring concerns pertaining to high crude prices, deceleration in domestic currency. Investors would keep a close vigil on US President Donald Trump meet with North Korean leader Kim Jong un in Singapore next month amid high hopes of doing something very  meaningful to curtail Pyongyang's nuclear ambitions.

In the week gone by, the Indian automobile sector's sale of domestic passenger cars grew by 4.89 percent in April. As per the data furnished by the Society of Indian Automobile Manufacturers (SIAM), 2,00,183 passenger cars were sold in April - up from 190,854 units off-take in 2017.

The Implied Volatility (IV) of calls was up and closed at 13.69 percent while that for put options closed at 13.12 percent. The Nifty VIX for the week closed at 14.43 percent and is expected to remain volatile. The PCR OI for the week closed up at 1.29 which indicates OTM put writing.

Weekly chart

The US markets also closed on a positive note. The S&P 500 rose on Friday, helped by healthcare stocks after President Donald Trump blasted high drug

prices but avoided taking aggressive measures to cut them. The Dow Jones Industrial Average rose 0.37 percent to end at 24,831.17 points, while the S&P 500 gained 0.17 percent to 2,727.72, its highest close since mid-March. The Nasdaq Composite slipped 0.03 percent to 7,402.88. For the week, the Dow rose 2.3 percent, the S&P 500 added 2.4 percent, and the Nasdaq climbed 2.7 percent.

US consumer price index rose by 0.2 percent in April after edging down by 0.1 percent in March. Economists had expected consumer prices to climb by 0.3 percent. US jobless claims came in at 211,000, unchanged from the previous week's unrevised level. Economists had expected jobless claims to rise to 218,000. The four-week moving average of jobless claims still edged down to 216,000, a decrease of 5,500 from the previous week's unrevised average of  221,500.

The European markets also posted gains last week, ending higher for seventh straight week with shares scoring longest weekly winning streak in three years.

The Stoxx Europe 600 index ended 0.1 percent higher at 392.40, after swinging between small gains and losses throughout the session. The pan-European  index gained 1.4 percent for the week, matching a seven-week run of advances that ended in March 2015.

The Bank of England decided to maintain its key interest rate and quantitative easing as it forecast slower economic growth and inflation than its previous projections. Seven members of the Monetary Policy Committee voted to maintain the benchmark rate at 0.5 percent, while two sought a hike. Policymakers unanimously decided to maintain the quantitative easing at GBP 435 billion. The decisions were in line with economists' expectations.

UK industrial output rose 0.1 percent month-on-month in March, the same pace of increase as seen in February, figures from the Office for National Statistics showed Thursday. Output was expected to gain 0.2 percent.

Most Asian stocks closed higher on Friday driven by Wall Street following softer-than-expected US inflation data. The Nikkei 225 closed up 1.16 percent, or 261.30 points, at 22,758.48 in Tokyo and the broader Topix gained 0.98 percent. For the week the Nikkei registered a gain of 1.27 percent while the South  Korean Kospi added 0.66 percent.

With inputs from Reuters & other agencies
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