A roundup of trading on major world markets:
NEW YORK – US stocks closed narrowly mixed, taking a pause a day after a blockbuster rally as investors digested Europe’s eurozone debt deal and company earnings.
The Dow Jones Industrial Average climbed 22.56 points (0.18 per cent) to finish at 12,231.11 on Friday.
The Nasdaq Composite dropped 1.48 points (0.05 per cent) to 2,737.15, while the S&P 500 index, a broader measure of the markets, barely moved, edging up 0.49point (0.04 per cent) to 1,285.08.
Wall Street stocks had opened slightly lower, then clawed their way up in trade lacking clear direction “as traders grapple with the implementation of Thursday’s eurozone debt crisis plan,” Charles Schwab analysts said.
The blue-chip Dow has advanced 12 per cent since the beginning of the month, rebounding to the level last seen on July 28 when US politicians were battling over raising the nation’s debt limit.
There was little action in economic news — a September reading on personal spending and income from the US Commerce Department was in line with expectations.
The bond market rallied. The yield on the 10-year Treasury fell to 2.31 per cent from 2.40 per cent, while that on the 30-year Treasury declined to 3.35 per cent from 3.45 per cent.
Bond yields and prices move in opposite directions.
LONDON – European stock markets closed mostly lower as investors took a more critical look at the eurozone debt rescue plan which drove massive gains the previous day in a euphoric relief rally.
Dealers said some consolidation was only to be expected given the advances of five per cent and more in some centres on Thursday after EU leaders agreed to cut Greek debt, bolster the banks and strengthen a eurozone bailout fund.
They said sentiment overall is positive on the hard-won deal but the market now wants to see specific details of how and when it will be implemented, with all eyes on Italy especially to make good on its promises to do better.
Rome, significantly, had to pay higher rates above the key red-line level of 6.0 per cent to investors on Friday to raise fresh funds — not a good sign, analysts said.
In London, the FTSE-100 index of top companies slipped 0.20 per cent to 5702.24 points. In Paris, the CAC-40 fell 0.59 per cent to 3348.63 points but in Frankfurt the DAX 30 edged up 0.13 per cent to 6364.18 points.
Other European markets were also mostly lower.
The euro meanwhile eased to $US1.4164 from $US1.4187 on Thursday, when the European single currency hit a seven-week high of $US1.4247 on the EU debt deal.
The dollar fell to 75.75 yen from 75.94 yen, while gold advanced to $US1730 an ounce from $US1718.
HONG KONG – Asian markets have extended their rally from Thursday after European leaders finally came to an agreement on a plan to tackle the region’s sovereign debt crisis.
Adding to the relief was data from the United States showing the world’s biggest economy grew at a strong pace in the three months to September, easing fears of a new recession there.
Tokyo gained 1.39 per cent, or 123.93 points, to end at 9,050.47, Sydney was 0.12 per cent, or 5.1 points, higher at 4,353.3 and Seoul closed 0.39 per cent, or 7.44 points, up at 1,929.48.
Hong Kong added 1.68 per cent, or 330.54 points, to 20,019.24 while Shanghai was 1.55 per cent, or 37.80 points, up at 2,473.41.
Traders remained bullish after a deal was struck in the early hours of Thursday that will see 100 billion euros ($A132.84 billion) of Greece’s debts wiped out, banks reinforce their capital defences and a bailout fund get a huge boost.
WELLINGTON – Wellington gained 0.67 per cent, or 22.13 points, to 3,325.60.
Freightways rose 1.2 per cent to $NZ3.46 but Port of Tauranga lost 0.5 per cent to $NZ9.70.
