A roundup of trading on major world markets:
NEW YORK – US blue chips rebounded but tech stocks fell Thursday after Germany’s parliament approved a crucial EU bailout package and new US data gave the economy a slightly more positive tint.
The Dow Jones Industrial Average closed up 143.08 points (1.30 per cent) at 11,153.98. The broader S&P 500 added 9.34 (0.81 per cent) to 1,160.40, but the tech-heavy Nasdaq Composite fell 10.82 (0.43 per cent) to 2,480.76.
After a strong upward push in the morning, with the Dow’s gains topping 2.0 per cent, the markets pulled back.
Bank of America led the Dow push upward, adding 3.08 per cent after losing nearly five per cent Wednesday.
Tech stocks were dragged down by a 1.62 per cent drop in Apple and a 3.16 per cent fall in Amazon, a day after Amazon launched its assault on Apple’s iPad with a new tablet that sells for less than half the iPad price.
The signals were mildly positive, with an upward revision in the second quarter GDP growth figure to 1.3 per cent, and a sharp fall in weekly jobless benefits claims.
Meanwhile, Germany’s approval of the EU’s July 21 plan gave hopes that it would pass all 17 eurozone states and Europe’s leaders would move ahead with a confidence-building second bailout of Greece and also strengthen the region’s banks.
Bond prices rose. The 10-year Treasury bond yield was at 1.96 per cent compared to 2.00 per cent late Wednesday, while the 30-year yield fell to 3.00 per cent from 3.09 per cent.
Bond prices and yields move in opposite directions.
LONDON – European stocks jumped after Germany’s parliament voted overwhelmingly to boost the eurozone rescue fund and positive US growth and unemployment figures.
Frankfurt’s DAX rose 1.10 per cent to 5,639.58 points and Paris 1.07 per cent to 3,027.65 points.
Milan jumped 2.07 per cent despite Italy being forced to pay sharply higher interest to borrow funds in its first debt auction since having its credit rating downgraded by Standard & Poor’s last week.
London’s FTSE-100 also rose after the German vote but in the end was dragged down 0.40 per cent to 5,196.84 points by weak mining stocks.
The European single currency climbed to $US1.3626 from $US1.3536 late in New York on Wednesday. The US dollar rose to 76.71 yen from 76.53 yen on Wednesday.
Also on Thursday, international auditors resumed talks in Greece to decide whether the government in Athens was doing enough to merit more financial aid amid mounting social tension over the government’s austerity measures.
HONG KONG – Asian markets were mixed in choppy trade ahead of Germany’s key bailout package vote.
Tokyo reversed early losses to finish 0.99 per cent higher, with the benchmark Nikkei 225 index rising 85.58 points to 8,701.23 as the market welcomed a rebound in the euro.
But Seoul was the standout performer, putting on 2.68 per cent amid growing expectations that Germany will likely be the latest of the 17 eurozone parliaments to ratify an expansion of the 440-billion-euro fund.
Sydney slipped 0.77 per cent, but finished off its lows, while Chinese shares finished 1.12 per cent lower on fears of a domestic slowdown due to the woes in Europe and the US.
The Shanghai Composite Index, which covers both A and B shares, was down 26.72 points at 2,365.34 on turnover of 57.0 billion yuan.
The key index is close to a 15-month low of 2,363.95 points reached on July 5, 2010.
China’s economy expanded 9.5 per cent year-on-year in the second quarter of this year, slower than the 9.7 per cent posted in the first quarter and 9.8 per cent in the fourth quarter of 2010.
On foreign exchange markets, the euro gained on buybacks against other major currencies in Asia.
The euro fetched $1.3608 in Tokyo trade against $1.3536 in New York late Wednesday. The European single unit also rose to 104.09 yen from 103.60 yen.
The dollar traded at 76.51 yen, little changed from 76.53 yen.
Singapore added 0.26 per cent, or 6.96 points, to 2,708.13.
Hong Kong markets were closed for the day due to a typhoon
