On the dashboard, the Japanese Nikkei closed the trading session at 9,682.21 points, with a minor drop of 0.04 %. The broader Topix moved upwards by 0.05%.

The Japanese government approved additional expenditure amounting to 4 trillion yen ($48.5 billion) to support and relief the affected areas by the earthquake, a move that does not include issuing new bonds. The amount will be used to fund temporary housing, for rebuilding infrastructure and for low-interest loans to businesses affected by the earthquake and tsunami of March 11.

Furthermore, the shares of Mitsubishi UFJ Financial Group rose by 0.5% in the wake of news that will gain 200 billion yen by the conversion of Morgan Stanley’s premium shares to common.

In mainland China, the market showed negative signs due to the fears that the Chinese government will apply further tightening measures to fight inflation, something that will cause a decline on the development rates and demand. The Shanghai Composite fell by 0.53% and the broader CSI 300 declined by 0.53%. The index Kospi in South Korea reduced by 0.03% while in Taiwan the Taiex index recorded profits of 0.13%.

On the other hand, the financial sector recorded another drop – on weekly basis – by 0.2%. This is the seventh consecutive week that the financial sector records weekly losses.

At Thursday’s meeting, the small increase in key indices was enough to lead Dow Jones at its highest level of the past 2.5 years. Also, to the highest level of the past two months concluded the transactions the other two main key indices.

Investors also focused on the forex market as the decline of the dollar in 16 months low against the euro boosted the prices of the commodities shares. New high record recorded the price of gold which closed over the psychological level of $1,500 per ounce while the price of crude oil closed the trading session at $112 a barrel.
Dow Jones gained 52.45 points (0.42%) and closed at 12,505.99 points. NASDAQ gained 17.65 points (0.63%) and closed at 2,820.16 points. S&P 500 increased by 7.02 points (0.53%) and closed at 1,337.38 points.

Of the 30 stocks that combine the Dow Jones index 20 closed in positive sign and 10 in negative. Of these, the largest percentage gains were recorded by the Travelers Companies which closed at $61.32 with an increase of $2.19 or 3.70%. IBM followed with profits of 2.14% at $168.28 and Alcoa which closed at $16.97 with an increase of 1.98%.

In contrast, the three stocks with the worst performance were Pfizer (-2.94%), the Verizon (-2.33%) and General Electric (-2.21%).

“After a slow start, profits have improved quite quickly and the results of companies like Intel and Apple helped the investment climate”, commented in CNBC Mr. Keith Bowman, analyst of Hargreaves Lansdown. “The better than expected corporate figures actually create the security that the recovery is gaining momentum, especially when firms increase the “guidance” for next quarter”, said Mr. Marcus Huber of ETX Capital in London.

The pan-European Stoxx Europe 600 index gained 0.51% and closed at 280.47 points. The Stoxx 50 increased by 0.51%. The British FTSE 100 index moved lower by 0.07%, the German DAX gained 0.64%, while the French CAC-40 declined by 0.43%.

Profit of 0.46% recorded the IBEX index in Spain, at a rate of 1.43% was supported the Italian MIB, while the Swiss SMI enhanced by 0.19%. Mixed signs for the Russian indices as the RTS closed positively by 0.05% while the Micex declined by 0.16%. In Turkey, the index ISE strengthened by 0.75%.

In business development, a lawsuit against Transocean – the owner of the rig Deepwater Horizon – filed by the British BP one year after the explosion of the oil rig which caused the greatest environmental disaster in U.S. history. BP demands at least $40 billion in damages and other costs, while it filed a lawsuit also against Halliburton. The British oil giant also blames Cameron International for negligence, claiming that Cameron’s security system failed to prevent the disaster.

Investors sold the yen against a range of currencies, helping drive the euro, Australian and New Zealand currencies up around 0.4 percent on the day. This showed investors continue to favour higher-yielding currencies at the expense of the dollar and yen.

BNY Mellon analyst, Samarjit Shankar, reported that the bank’s flow indicators showed the Euro was the strongest net bought currency among the G10 as its decline earlier this week gave the market better re-entry levels.

Data released from Germany and France highlighting business activity in those economies, indicated that they continued to outpace the rest of the common currency bloc. However, the peripherals are kept alive by rate hike expectations by the European Central Bank.

“This has also buoyed the single currency despite the lingering sovereign debt crisis in the region’s peripheral markets,” Shankar added.

The Euro last hit a high of USD1.4412 in the Asian session, having bounced off a two-week low around USD1.4156 set on Monday. Buying momentum gathered pace after stops were triggered following the break of Tuesday’s high around USD1.4351.

Against the yen, the Euro rose to 119.25 from Monday’s trough of 116.46.

Meanwhile, the Aussie was up against the Yen, hitting as high as 87. 56 in Asian trading, well off Monday’s low of 85.94.

Despite Euro’s rise, BNP Paribas analysts warned they see the risk for the market to square up very short dollar and yen positions in the lead-up to the Easter holidays.

Media reports suggesting the Bank of Japan will not take further easing actions at its end April meeting could also inhibit any early extension of Yen weakness, they added.

Greece has a debt burden that is forecast to rise to 340 billion euros this year, roughly one-and-half times its annual economic output.

“One must recognise the realities. I am expecting a haircut,” Clemens Fuest, Chairman of the German finance ministry’s technical advisory committee, reported to Reuters.

European Central Bank Executive Board members Juergen Stark and Lorenzo Bini-Smaghi both warned against such a step, however, saying it would hammer the Greek banking system and damage Europe’s credibility.

Despite their concerns, momentum seems to be building for some form of “voluntary” restructuring in which bond holders would agree to roll over their holdings next year or extend their maturities, possibly in combination with buying of Greek bonds at auction by the EU’s rescue fund.

If Athens and its partners can convince investors to come to an agreement for such a plan, it could help Greece cope with an expected funding shortfall next year.

According to the joint EU-IMF program it signed up to in 2010 as part of its 110 billion euro bailout, the government must raise 25 billion euros in long-term funding by 2012.

Without some help from its EU partners and private investors, the Greek government will probably have difficulty raising the necessary funds.

Dow Jones was losing up to 247 points in early trade after the decline of the U.S. economy outlook by Standard & Poor’s to “negative” from “stable” as the international credit rating house warned that the political controversy for the excessive deficit exacerbates the financial profile of the U.S. However, S&P maintained its long-term credit rating to “AAA” and the short-term to “A-1+” although it warned that the deterioration of the outlook gives one in three chance of lowering the assessment of the U.S. within the next two years. In a separate report, S&P notes that the evaluation of the United States is based on high-income, diversified and flexible economy. Also notes that the assessment finds strong support in the history of prudent and credible monetary policy. The assessments, added the firm, also reflect the view of the unique advantages of the dominance of the dollar among world currencies.

“Although we believe that these advantages far outweigh what we consider key economic and financial risks for the United States and the large external position of the country as a debtor, we consider that no longer offset the credit risks for the period of the next two years in the evaluation AAA”, notes in the report Mr. Nikola G. Swann, analyst at Standard & Poor’s.

On the dashboard, Dow Jones index lost 140.24 points (-1.14%) and closed the trading session at 12201.59 points. NASDAQ index recorded a fall of 29.27 points (-1.06%) and closed at 2735.38 points. S&P 500 fell by 14.54 points (-1.10%) and closed at 1305.14 points.

Of the 30 stocks that combine the Dow Jones index only Boeing managed to close with positive sign as it increased by 0.26%. In contrast, the three stocks with the worst performance were the Bank of America (-3.12%), the Caterpillar (-3.09%) and Alcoa (-2.36%).

At the same time, investor interest focused on results of main U.S companies of the market as the banking giant Citigroup, the pharmaceutical Eli Lilly and the oil group Halliburton.

From the banking industry, profits slightly better than estimations announced Citigroup for the quarter. In particular, the banking giant’s profits fell by 32% and reached the $3 billion or 10 cents per share, from $4.4 billion or 15 cents per share in the corresponding period of 2010. Revenue fell by 22% to 19.7 billion dollars from 25.4 billion dollars. Analysts who participated in a FactSet Research poll placed the earnings per share of the bank at 9 cents per share.

The pharmaceutical Eli Lilly & Co. announced profits of 95 cents per share for the first quarter from 1.13 dollars per share a year earlier, while revenue rose nearly 6%.

Profits more than doubled announced by the service company in the oil industry Halliburton Co. for the first quarter period. Specifically, the company’s earnings rose to $511 million or 56 cents per share from $206 million or 23 cents per share, while revenue rose by 40% to 5.28 billion dollars.

At macro level, with the fastest pace in more than ten years accelerated the development of the private sector in France in April, according to preliminary results of the monthly survey of Markit. The composite PMI index in France was strengthened to 62.4 points in April from 59.1 points in March, which is the highest level since September 2000.

In the front of corporate results, SABMiller Plc., – a global brewer with names such as Grolsch, Peroni Nastro Azzuro and Miller Lite – announced growth of volume in the fourth quarter above expectations, due to the activities in Africa and Asia. Beer volumes – for the quarter ended March 31st rose by 3% on organic basis, excluding acquisitions and sales. Analysts had predicted an increase of 1.7%. This increase reflects the acceleration of growth of 2% over the same period last year and it is even compared to the 3% increase in the third quarter.

On the dashboard, the pan-European Stoxx 600 index is strengthened by 0.35% at 273.56 points, while the Stoxx 50 rises by 0.25%. In London the FTSE 100 index records gains of 0.61%. The German index DAX is reinforced at a rate of 0.54% while in Paris the CAC-40 moves upward by 0.56%.

Losses of 0.05% notes the IBEX in Spain, at a rate of 0.42% declines the Italian MIB, while the Swiss SMI moves up by 0.73% and in Portugal the PSI drops by 0.58%. Positive signs show the indices in Russia as the RTS is at +0.97% and the Micex is enhanced by 0.89%. In Turkey, the ISE index moves upwards by 1.50%.

At new high record level closed the price of gold on Monday’s trading, very close to the psychological level of 1,500 dollars per ounce, while the price of silver climbed to new 31 years high as investors seek safe heavens. The most active contract of Gold – which is the one of June – gained 6.90 dollars or 0.5% and closed at 1492.90 dollars per ounce. Intraday, the price of Gold reached up to $1497.30 per ounce in the commodities exchange market in New York.

“The uncertainty in the markets is expected to maintain the high demand for gold as the precious metal is considered a safe haven”, said the Commerzbank.