Shares rebound on US data

Fri, Oct 26, 2012, 01:00

US stock-index pared declines and European shares rebounded after a report showed America's economy grew more than analysts estimated.

The euro weakened for a fourth day after Spain's unemployment rose to a record high.

Standard and Poor's 500 Index futures slid less than 0.1 per cent at 8.48am in New York, after losing as much as 1 per cent.

The Stoxx Europe 600 Index added 0.2 per cent, erasing earlier declines.

The euro depreciated 0.2 per cent to $1.2908 and Spanish 10-year bonds fell for a second day as unemployment.

The yield on 10-year Treasury notes dropped four basis points to 1.79 per cent.

Gross domestic product rose at a 2 per cent annual rate, Commerce Department figures showed.

Spain's unemployment, the second highest in the European Union after Greece, rose to 25.02 per cent from 24.6 per cent in the previous quarter, the National Statistics Institute said.

The drop in S&P 500 futures indicated the US gauge will extend this week's 1.4 per cent decline.

The Thomson Reuters/University of Michigan final index of consumer sentiment is also due today.

Apple, the world's largest company by market value, forecast profit that was less than analysts predicted after last quarter's profit rose to $8.67 a share, shy of the $8.75 a share projected by analysts. The shares rose 0.3 per cent.

Expedia climbed 17 per cent in German trading after the second-biggest online travel agency by market value reported third-quarter earnings that topped analysts' estimates.

Amazon, the biggest online retailer, had its first quarterly net loss since 2003 and reporting revenue that missed analysts' estimates.

Bloomberg

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