USA stocks rally buoyed by GE earnings

The US Consumer Price Index for all urban consumers decreased 0.2 percent in September on a seasonally adjusted basis, in line with market consensus, the Labor Department reported on Thursday. Hong Kong’s Hang Seng Index climbed 2.0%, while the Shanghai Composite Index gained 2.3%.

The latest survey of over 60 economists showed eurozone inflation was expected to average 0.1 percent this year, rise to 1.1 percent in 2016 and further to 1.6 percent in 2017 – still below the European Central Bank’s near 2 percent target. Late Thursday, Cleveland Fed President Loretta Mester said the US economy “can handle” an increase in interest rates, despite the risks around its outlook.

On Wednesday, US stocks ended lower after wavering between gains and losses, as Wall Street digested the Federal Reserve’s Beige Book amid lackluster economic reports.

Including results from 57 companies in the S&P 500, earnings are on track to slip 4.6% in the third quarter, according to FactSet. The Stoxx Europe 600 rose 1.5%. “That in my mind is really the key question going into earnings season”. Bank of Ireland rose by 4.4 per cent to 35.6 cent, while Permanent TSB was down 2.4 per cent to €4.616.

A few analysts suggested the rally over the past three weeks was due to expectations that the Federal Reserve will refrain from hiking interest rates in the near future due to weakness in global growth and recent market turbulence.

Patrick O’Hare of Briefing.com said the gains were “more of a sentiment-driven rally than a fundamentally-driven rally”, with investors ignoring signs, like companies widely reporting lower revenues in the third quarter, of slower economic activity.

CRIMPED CASINO: Wynn Resorts slumped 3.3 percent after the casino operator said new gambling regulations in Macau continued to hurt its business. The benchmark index gained 0.9% over the week. Caterpillar Inc. (NYSE:CAT) paced the six laggards, dropping 1.6% as industrial stocks tanked.

Bond prices edged higher.

Burberry Group Plc was the leading decliner on the FTSE 100 Index, with the shares tumbling the most since 2012 after the United Kingdom luxury-goods maker indicated profit will probably decline for a second straight year after sales in Asia dropped.

In commodities, gold gained 0.7% 1187.90 a troy ounce. Yields rise as prices fall.

Sulzer AG slipped 1.7 per cent after the Swiss maker of pumps said it is budgeting for a drop in earnings of as much as 15 per cent this year because of a slowdown in China and the oil- and-gas market.