Market Update: The German economy grows 0.6% in the third quarter

Source: Henderson Global Investors

Wall Street closed higher yesterday with the Dow Jones and the S&P 500 up 0.7% and 0.8% respectively. The Dow Jones closed above the 16,000 level for the first time in history, buoyed by a report showing fewer Americans were looking for work, as well as surging tech stocks, which also pushed the Nasdaq average higher. Also helping performance was news that the Senate banking committee had approved Ms Yellen’s nomination as chair of the Federal Reserve, which boosted hopes for continued support for the markets.

In Asia, Japanese equities led Asian bourses higher overnight as the yen traded at a fresh four-month low against the dollar. In China, there are reports of a squeeze in funding markets as well as news that the People’s Bank of China will continue to request that banks deleverage into the year-end.

European stocks are higher this morning with the FTSE 100 and the FTSE Eurofirst 300 up 0.2% and 0.3% respectively. Gross domestic product (GDP) in Europe's biggest economy, Germany, increased 0.6% in the third quarter, the same rate of growth as the previous period, driven by rising domestic demand in construction and investment, which offset a slump in exports. In stock news, Swiss pharmaceutical Novartis rallied after proposing a $5bn share buyback and saying it will expand in faster-growing areas of health care.