Elan's shares rose 4.6 per cent yesterday on the New York Stock Exchange as it received approval from the Food and Drugs Administration (FDA) for Prialt, its treatment for severe chronic pain. The stock closed at $26.78 having reached $27 during the day.
US stocks resumed their rally yesterday and shot to fresh year highs, as sharply stronger consumer confidence data cheered investors. US consumer confidence grew to a five-month high in December, bolstered by improved employment opportunities and cheaper energy.
The dollar hit a record low against the euro for a fourth straight trading day yesterday as confidence grew that central banks would not stand in the way of the greenback's decline. The euro rose to $1.3641 in the European midsession.
However, later in the session, the dollar rose slightly following the consumer confidence report.
The Dow Jones industrial Average ended up 78.41 points, or 0.73 per cent, at 10,854.54. The Standard & Poor's 500 was up 8.62 points, or 0.72 per cent, at 1,213.54. The Nasdaq Composite was up 22.97 points, or 1.07 per cent, at 2,177.19.
Wal-Mart Stores, the leading US retailer, rose nearly 1 per cent at $53.23, while Home Depot, which said it would begin selling refrigerators and other items online, rose 1.4 per cent at $42.84.
Online retailer Amazon climbed 5.6 per cent to $44.63 after Bear Stearns upgraded the firm.
Drug maker Pfizer rose 44 cents, or 1.6 per cent, to $26.94 as the company said it won regulatory clearance to sell its anti-fungus medicine Vfend to treat serious hospital-acquired bloodstream infections.
Meanwhile, in Europe, gains for luxury goods and healthcare groups added to a fightback for insurers yesterday.
Yukos tumbled 24.8 per cent to Rbs20, at which point the shares were suspended on the Micex exchange "until further notice". The fall came after S&P cut its credit rating on the oil company.
Some European insurers recouped the previous session's losses, which were in response to the weekend tsunami in south Asia. Assurances from Munich Re and Swiss Re, the world's top two reinsurers, that their exposure to the region was limited, were received warily by investors. Munich Re closed 0.5 per cent higher at 90.44 while Swiss Re fell 1.2 per cent to SFr80.20.
French peer Scor, which said the catastrophe would not have a "significant impact on results", shed 1.4 per cent to 1.37. - (Reuters, Financial Times Service)
