A roundup of trading on major world markets:
NEW YORK – US stocks put on solid gains Thursday, helped by more confidence in banks and the retail sector and in Europe’s push to ensure its banks remain stable in the case of a Greek sovereign default.
The Dow Jones Industrial Average closed up 183.38 points (1.68 per cent) to 11,123.33.
The broader S&P 500 added 20.94 (1.83 per cent) to 1,164.97, while the tech-heavy Nasdaq Composite rose 46.31 (1.88 per cent) to 2,506.82.
Financial stocks led the way on new confidence that the big US banks were relatively insulated from the eurozone crisis.
Treasury Secretary Timothy Geithner on Thursday reassured lawmakers that the US financial system was in “a significantly stronger position” after recovering from the 2008-2009 financial crisis.
After seesawing from negative to positive territory and back again, Apple’s shares closed little-changed, losing 0.23 per cent, in the first day of trade after the death of company founder and visionary Steve Jobs from cancer.
Bond prices fell. The 10-year Treasury bond yield rose to 1.99 per cent from 1.91 per cent late Wednesday, while the 30-year yield climbed to 2.95 per cent from 2.88 per cent.
LONDON – European stock markets have closed sharply higher, extending gains on the view EU leaders are getting closer to solving the eurozone debt crisis, helping defuse threats to banks and the economy.
Dealers said decisions by the European Central Bank and the Bank of England to keep interest rates on hold were as expected while their readiness to offer fresh help to keep the economy on track was welcomed.
The BoE said it would pump another STG75 billion ($A120 billion) into the stalled British economy under its quantitative easing policy while the ECB will offer banks longer term concessional funding.
In London, the FTSE 100 index of top shares closed up 3.71 per cent at 5,291.26 points on Thursday.
In Frankfurt, the DAX added 3.15 per cent to 5,645.25 points and in Paris, the CAC-40 jumped 3.41 per cent to 3,075.37 points.
Milan was up 3.55 per cent and Madrid up 2.68 per cent.
The European single currency bounced back to $US1.3415 from $US1.3388 in New York late Wednesday. The dollar fell to 76.63 yen from 76.82 yen.
Hopes for help for the banking system got another boost as European Commission president Jose Manuel Barroso said the EU executive was seeking “co-ordinated action” in all 27 European Union nations to recapitalise banks.
The debt crisis is now seen as threatening the banks exposed to distressed sovereign debt which now find it increasingly hard to secure short-term funding in the interbank money market.
The BoE has kept interest rates at a record low 0.50 per cent since March 2009 when it began pumping STG200 billion into the economy.
HONG KONG – Asia’s stock markets surged, boosted by another strong performance on Wall Street and hopes European leaders will come together to plan a route out of the region’s sovereign debt crisis.
Sentiment was also lifted by better-than-expected economic data out of Washington that eased concerns the United States is slipping into recession.
Tokyo jumped 1.66 per cent, or 139.04 points, to 8,522.02, Seoul rallied 2.63 per cent, or 43.80 points, to 1,710.32 and Sydney raced 3.65 per cent, or 143.4 points, higher to 4,069.9.
Hong Kong soared 5.67 per cent, or 922.01 points, to end at 17,172.28.
Shanghai and Mumbai were closed for public holidays.
On currency markets the single currency was at $1.3352, slightly up from $1.3346 late Wednesday in New York, and at 102.45 yen against 102.44. The dollar was at 76.73 yen, from 76.78.
Stocks linked to Apple were mixed following news the US giant’s co-founder and chairman Steve Jobs had died of cancer.
In Tokyo, the official iPhone carriers were mixed. Softbank fell 0.30 per cent and KDDI gained 1.26 per cent, while among parts suppliers Sharp rose 3.45 per cent and Ibiden surged 4.77 per cent.
In Seoul, rival Samsung Electronics was up 1.54 per cent while LG Electronics rose 6.33 per cent, in a surging market.
And in Taipei, Hon Hai Precision — the parent of Apple goods assembler Foxconn, gained 3.55 per cent while smartphone maker HTC was 1.63 per cent lower.
Singapore gained 2.94 per cent, or 74.41 points, to 2,603.12.
WELLINGTON – Wellington closed 0.54 per cent, or 18.09 points, higher at 3,346.21.
Fletcher Building gained 2.4 per cent to NZ$7.81 but Fisher & Paykel Healthcare dropped 1.2 per cent to NZ$2.55.
