US markets opened in resounding fashion this afternoon, led by chip manufacturer Intel, with both the Dow Jones and the S&P 500 well up at the start.
In the UK, the FTSE 100 has been relatively flat after bursting through the psychological 6000 level this morning, and floated around 6020 for most of the afternoon.
The bulls have retained their stranglehold on the day, as a strong start on Wall Street affirmed the promising strides made in London this morning. However, tentative housing data from the US and the seemingly unstoppable charge of the gold price ensured an air of caution remains.
US equities – Intel and United Tech Corp
The Dow Jones was off like a shot as the opening bell tolled on Wall Street today, jumping more than 160 points (+1.37%) almost immediately. At 3.30pm (London time) the Dow was trading at 12,455.66. The S&P 500 made a similarly sudden start, surging around 1.45% to 1341.66 (+19.04) by 3.30pm.
Intel Corp was fastest out the blocks at the open, surging 6.39% on the back of a positive report released yesterday. The chip manufacturer reported global sales that were better than expected, and forecast estimate-beating revenue in the second quarter. This positivity prompted a rally across global markets even before the Dow opened this afternoon.
Manufacturer United Tech Corp also started the day strongly in the US, up 4.32% after raising its full-year earnings forecast on sales growth across all of its six divisions.
UK afternoon trading – ARM Holdings, GKN plc and miners
London's FTSE 100 has held onto this morning's strong gains, edging quietly along at around the 6020 level for most of the afternoon trading session.
ARM Holdings has made the day's biggest gains, up 35p (+6.08%) to 610.50p. The chip manufacturing giant was buoyed by US peer Intel's positive report last night, and further boosted by the company's rapid start at the open on Wall Street.
Also making strong gains today is global engineering group GKN, up 10.60p (+5.41%) to 206.60p. The company, a components supplier to Airbus, was boosted by a recommendation upgrade to 'outperform' from RBC Capital.
Xstrata continued its good day, climbing to 1522.50p (+4.39%), while mining peers Antofagasta, Fresnillo and Kazakhmys have also all enjoyed a bountiful yield on the day's trading so far.
US housing market treading water
Today's US existing home sales figures for March showed an improvement on last month, and were ahead of economists' median forecast. But as with housing starts figures the day before, the increase was not enough to offset the ground lost in February. While the 3.7% increase in purchases is a welcome sign of growth, the market may take some yet to fully recover.
Euro strength
The euro rose against sterling, the yen and the US dollar this afternoon. Sterling's retreat was led by the news that the BoE's policymakers voted six to three to keep interest rates steady for another month. The dollar index, meanwhile, was down 0.9%, extending yesterday 0.6% drop.
