Morning Market Overview Mar 17

The Nasdaq Composite climbed 15.80, or 0.67%, to 2378.01, its highest close since Aug. 28, 2008. The Standard & Poor's 500 index advanced 8.95, or 0.78%, to 1159.46, its highest close since Oct. 1, 2008. Every sector ended the session in the black, led by materials. The gains came after the Federal Reserve said the economy is continuing to improve. American International Group fell 71 cents, or 2.1%, to 33.61, following a note from BNP Paribas pointing out that AIG still needs Uncle Sam to survive. The firm's credit researchers found AIG still has no real equity for shareholders. Domtar climbed 4.01, or 6.4%, to 67.01, after the Montreal-based paper producer said it is exiting the coated groundwood paper business with the closure of a mill in Columbus, Miss. Operations at the mill will cease by the end of next month. Limited Brands advanced 1, or 4.2%, to 24.71, after the retailer declared a special dividend of $1 a share and said it will buy back up to $200 million in shares. Melco Crown Entertainment (Nasdaq) rose 38 cents, or 8.5%, to 4.85, after Credit Suisse boosted its investment rating on the stock to outperform from neutral, saying incremental gross gaming revenue will boost the company's profitability significantly and reduce concerns about the casino operator's financing plan. Other casino operators also gained as Macau's February revenue rose about 70% from a year earlier.

European stocks finished higher Tuesday, extending gains late in the session after ratings agency Standard & Poor's said Greece was on track to meet its near-term budget goals. After falling twice in the last three sessions, the Stoxx Europe 600 rose 0.9% to finish at 259.03. Stocks in Europe added to gains after Standard & Poor's removed Greece from CreditWatch, though the country's outlook is still negative. Monday, Europe's finance ministers agreed on an emergency plan to rescue Greece from bankruptcy. The ministers said they were ready to provide financial assistance if the Greek government asked for it, but credit guarantees for the country were reportedly ruled out. Greece's ASE Composite Index remained in the red, however, falling 0.5% to 2,112.67, though the index was well off the lowest levels of the day. The German ZEW investor confidence poll for March beat forecasts. The index fell to 44.5 in March from 45.1 in February, against expectations for a reading of 43. Other data released Tuesday showed European new-car registrations up 3% in February. The German DAX index rose 1.1% to close at 5,970.99 and the U.K.'s FTSE 100 index rose 0.5% to settle at 5,620.43. The French CAC-40 index gained 1.2% to finish at 3,938.95. 

Asian shares ended mixed Tuesday ahead of the crucial policy meeting at the U.S. Federal Reserve and the outcome of the Bank of Japan's meeting Wednesday. Japanese exporter stocks retreated after a series of strong performances over the past few days, while coal miners extended their drop in Hong Kong after China Shenhua Energy Co.'s weaker-than-expected earnings last week. Japan's Nikkei 225 lost 0.3% to 10,721.71, South Korea's Kospi dropped 0.1%, and Taiwan's Taiex rose 0.8%. China's Shanghai Composite rebounded 0.5% after declining in the previous two sessions, while Hong Kong's Hang Seng Index shed 0.3%. The decline in Japan came after strong gains over the past few days, which were fueled by hopes of further BOJ policy easing, and were prompted by mild gains for the yen against the U.S. dollar. Among exporters, Canon Inc. lost 1.3% and Honda Motor Co. dropped 1.5%. Shipping stocks also ranked among the losers after sharp gains on Monday. Mitsui O.S.K. Lines dropped 1.0% and Kawasaki Kisen Kaisha slid 0.6%. 

Base metals on the London Metal Exchange built on early gains to close solidly higher Tuesday, tracking a similar move higher in the euro against the dollar. The metals mostly followed the lead of currency and equity markets again, though higher oil prices also provided a lift. Copper ended 1.4% higher at $7,400 a metric ton. Nickel was the day's biggest gainer, as it closed 1.8% higher and neared a one-week high. Investors expect metals prices to continue to rise as demand keeps recovering in the West and Chinese demand remains strong. The copper concentrate and scrap copper are tight, while consumption has been boosted by restocking. Crude oil prices rose over 2% Tuesday as investors' appetite for risk returned on an improved outlook for the economy, with the U.S. Federal Reserve keeping interest rates unchanged. Concerns over sovereign debt in Greece also abated somewhat after ratings agency Standard & Poor's announced it had taken the country's debt off its ratings watch. Light, sweet crude for April delivery settled $1.90, or 2.4%, higher at $81.70 a barrel on the New York Mercantile Exchange. It touched an intraday peak of $82.04 a barrel. Brent crude on the ICE Futures exchange settled $1.13, or 1.5%, higher at $79.02 a barrel. Gold futures remained sharply higher after the Federal Reserve left interest rates unchanged, following a higher settlement in which participants were positioning themselves bullishly ahead of the announcement.