Sharemarkets extend Fed-fuelled rally
Sharemarkets rose around the world as the US Federal Reserve's decision to buy more bonds was taken as devaluing to the US currency while boosting investors' appetite for riskier assets such as stocks and commodities.
US economic news was mixed. Retail sales for August rose 0.9% on the month, matching the median estimate of economists, while industrial production fell 1.2%, more than economists expected.
But consumers felt better about the economy. The Thomson-Reuters/University of Michigan's consumer-sentiment index for September registered the highest reading since May, topping forecasts.
On Wall Street, stocks rose for the second week. The Dow Jones Industrial Average rose 53.51 points, or 0.4%, to 13,593.37. It pared earlier gains of as much as 113 points but rose 2.2% for the week.
The S&P 500 index advanced 0.4% to 1465.77, a 1.9% weekly rise. Energy and materials shares, seen as tied to global growth, led the advance. Defensive sectors such as telecommunications and consumer staples lagged.
The Nasdaq Composite Index rose 0.9% to 3183.95, up 1.5% for the week.
Other markets: Europe, Asia up
European markets were broadly higher, catching up to the Fed's latest economic stimulus move.
The Stoxx Europe 600 jumped 1.3% to 275.95, its highest close since June 2011. It ended the week with a 1.3% gain and closed at a 15-month high.
The UK’s FTSE 100 index rose 1.6% rise at 5915.55, gaining 2.1% for the week.
In France, the CAC 40 index jumped 2.3% to 3581.58, a 1.8% rise in the week.
In Germany, the DAX 30 rose 1.4% to 7412.13, a weekly rise of 2.7% and a 14-month high.
In Asia, markets also reacted positively to the Fed’s move.
Korea's Kospi Composite hit a five-month high and Australia's ASX 200 traded at its highest level since early May.
The Kospi leapt 2.9% to 2007.58, climbing above the 2,000 point for the first time in five months, and the S&P/ASX 200 added 1.2% to 4390.00, up 1.5% for the week.
Japan's Nikkei added 1.8% to 9159.39, ending the week up 3.2%.
The Hang Seng Index was up 2.9% to 20, 629.78, up 4.2% for the week, and China’s Shanghai Composite Index rose 0.6% to 2123.85.
Commodities: Oil hits $US100
Oil prices climbed to a four-month high and briefly topped a $US100 a barrel. Light, sweet crude for October delivery settled up 69USc, or 0.7%, at $99 a barrel in New York, its highest finish since May 3.
Currencies: Euro rises as US dollar falls
The US dollar dropped, erasing any gains made this year.
The euro was at $US1.3113 compared with $US1.2988 late on Thursday. It pushed above the $US1.31 level for the first time since early May and is higher than it was at the beginning of 2012.
Against the yen, the euro traded at ¥102.64 from ¥100.68 and the dollar was at ¥78.27 compared with ¥77.49.
The pound traded at $US1.6214, from $US1.6154.
The Australian dollar, which often gains along side risk assets and commodities, jumped to $US1.0562 after gaining sharply on Thursday to $US1.0543.
The ICE dollar index fell to 78.89 from 79.254.