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Markets

Equities - Weekly outlook: May 13 - 17

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Investing.com - The Dow and the S&P closed at record highs on Friday, as U.S. stocks notched up a third successive week of gains as monetary easing by world central banks fuelled optimism over the outlook for growth.

The Dow Jones industrial average was up 0.24% and ended the week with a 1% gain.

The S&P 500 rose 0.43% on Friday, reaching new record highs and gained 1.2% for the week. The Nasdaq surged 0.80%, extending the week's gains to 1.7%, the highest close since November 2000.

The Federal Reserve is purchasing USD85 billion a month of government bonds currently and Chairman Ben Bernanke has pledged to maintain the asset purchase program as long as the U.S. unemployment rate stays above 6.5% and the outlook for inflation does not rise above 2.5%.

Asian markets were broadly higher on Friday. Japan's Nikkei jumped 2.9% to close at the highest level since January 2008 after the yen fell to more than four-year lows against the dollar, boosting the earnings outlook for exporters.

China's Shanghai Composite gained 0.6%. Australia's ASX 200 index added 0.2% on Friday and was up 1.5% for the week, its third consecutive weekly gain.

In Europe, the benchmark Stoxx Europe 600 was up 0.4% on Friday, tracking gains in Japanese stocks.

Germany's DAX climbed 0.2% after official data showed that both exports and imports were higher in March, following falls in February. France's CAC 40 advanced 0.6%, while Britain's FTSE 100 closed up 0.5%

Elsewhere, oil prices fell sharply as the broadly stronger dollar made crude more expensive for traders using other currencies, with contracts for June delivery settling at USD95.94 a barrel, down 0.5%.

Gold sank to a two week low, with futures for June delivery dropping 1.5% to settle at USD1,446.65 a troy ounce.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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