Dow hits a four-year high

Marion Dakers
NEWS of the stress test results helped send the Dow Jones industrial average to its highest level since 2007 yesterday, with a late spark coming from JP Morgan and its dividend announcement.

And the Nikkei opened above 10,000 this morning to hit a seven-month high on the back of the strong performance in US markets.

While stocks had been riding high all day, buoyed by strong US retail sales and supported by a slightly improved outlook from the Federal Reserve, the late push came from financial stocks as the premature stress test results trickled out.

The central bank said earlier in the day that it expects “moderate” growth over coming quarters with the unemployment rate declining gradually.

US Treasury debt prices tumbled, while the dollar rose to an 11-month high against the yen.