US stocks climbed more than 1 percent today, rebounding from a sharp decline last week, helped by deal activity in healthcare and a bounce in energy shares.
Also boosting investors’ risk appetite, Chinese stocks surged to seven-year highs, helped by hopes for more infrastructure spending and monetary policy easing.
The Dow registered its biggest daily percentage gain since Feb. 3 and all 10 primary S&P 500 sectors rose on the day, led by energy, which jumped 2.1 percent despite a slight decline in Brent and US oil prices.
On the deal front, OptumRx Corp, a unit of UnitedHealth Group, agreed to buy pharmacy benefit manager Catamaran Corp in a deal worth $12.78 billion. Shares of UnitedHealth, a Dow component, rose 2.5 percent to $121 while US shares of Catamaran added 23.8 percent to $59.83.
The Dow Jones industrial average rose 263.65 points, or 1.49 percent, to 17,976.31, the S&P 500 gained 25.22 points, or 1.22 percent, to 2,086.24 and the Nasdaq Composite added 56.22 points, or 1.15 percent, to 4,947.44.
Major indexes each lost more than 2 percent last week.
Uncertainty about Friday’s jobs report and upcoming earnings, which start in earnest in mid-April, could create volatility this week, with the stock market closed for Good Friday.
The Nasdaq Biotech index rose 1.1 percent but remains roughly 5 percent below a record high from earlier this month. The group has recently been under pressure, with the index down 5.2 percent last week in its biggest weekly decline in a year.
European stocks also rose, bouncing back from last week’s losses with tech shares rallying after merger talks in the industry spurred rallies in the sector.
Shares in European technology stock Infineon rose 4.2 percent, while its peers STMicroelectronics and ASML rose 3.6 percent and 2.9 percent respectively.
US tech stocks had climbed on Friday after news of Intel’s talks to buy fellow chipmaker Altera in a deal likely to top $10 billion.
Signs of merger and acquisition activity also pushed up the shares of Yoox by 10 percent, after Yoox and Richemont’s Net-a-Porter confirmed they were in talks to form an online fashion industry leader.
Corporate deals, along with new economic stimulus measures from the European Central Bank which have helped to weaken the euro on currency markets, have driven European stock markets to new highs this year.
The pan-European FTSEurofirst 300 index rose 1.2 percent to 1,596.31 points, back near a 7-1/2 year high of 1,613.80 points reached earlier in March.
Germany’s DAX also rose 1.8 percent to 12,086.01 points, near a record high of 12,219.05 points hit in mid-March.
In Asia, Japan’s Nikkei share average rose in choppy trade as investors bought back stocks on dips after the index tumbled last week, but energy shares underperformed as oil prices extended their losses.
The Nikkei benchmark rose 0.7 percent at 19,411.40 after being in negative territory earlier.
The broader Topix added 0.3 percent at 1,557.77 and the JPX-Nikkei Index 400 advanced 0.3 percent to 14,182.85.
Source: Buenos Aires Herald