Market update: Chinese manufacturing boosts markets after mixed earnings

Wall Street managed to notch up a sixth day of gains yesterday (S&P 500 +0.2%; Dow Jones +0.5%), helped by Google and IBM’s strong results, which had come after the US market’s close on Tuesday, and McDonalds, which modestly beat consensus earnings expectations. However, Apple shares fell in extended trading after disappointing on sales and revenues. In political news, the US House of Representatives has temporarily suspended the US ‘debt ceiling’ – the maximum amount of borrowing that the US can legally incur – for nearly four months. In the meantime the White House and Congress will be locking horns over spending cuts as a budget must be passed by mid-April.

European markets are digesting yesterday’s earnings releases (FTSE Eurofirst 300 +0.02%; FTSE 100 +0.2%), with the technology sector slightly down (-0.3%) following Apple’s results. Chinese data has provided some encouragement, however, as manufacturing hit a two-year high. The preliminary reading of the HSBC Purchasing Managers’ Index was 51.9 in January, up from 51.5 in December (showing continued expansion), with exports stabilising and export orders rising.