A roundup of trading on major world markets:
NEW YORK – US stocks rebounded Thursday amid signs that Italy and Greece were moving to form new governments that would address their deep debt problems.
After falling on Wednesday, the Dow Jones Industrial Average closed up 112.92 points (0.96 per cent) to 11,893.9 in closing trade.
The broad-based S&P 500 added 10.56 (0.86 per cent) to 1,239.66, while the tech-heavy Nasdaq Composite edged up 3.50 points (0.13 per cent)to 2,625.15.
“Stocks are higher today after Greece tapped former central banker Lucas Papademos as interim prime minister and (amid) reports of the European Central Bank buying Italian and Spanish debt,” said Scott Marcouiller of Wells Fargo Advisors.
LONDON – European stock markets closed narrowly mixed after heavy losses driven by fears the eurozone debt crisis could snare Italy as its next victim and plunge the bloc into recession.
In London, the FTSE-100 index of top companies closed down 0.29 per cent to 5,444.82 points on Thursday.
In Paris, the CAC-40 fell 0.34 per cent to 3,064.84 points but in Frankfurt the DAX 30 gained 0.66 per cent to 5,867.81 points.
Milan shares rebounded more than two per cent at one stage but finished with a gain of 0.97 per cent while Madrid dropped 0.36 per cent.
Italy had to pay record rates of 6.087 per cent to sell five billion euros ($A6.7 billion) in 12-month Treasury bills in a closely watched auction which at least attracted substantial interest.
Italian borrowing rates on the secondary bond market exceeding seven per cent on Wednesday are too high for Rome to be able to fund its public deficit over the longer-term but they eased on Thursday to offer some relief.
The euro was at $US1.3595, after having earlier tumbled in Asian trade to $US1.3484, the lowest since October 10.
HONG KONG – Asian stock markets slumped after Wall Street suffered a pummelling, with a surge in Italy’s borrowing costs fuelling global anxiety about the future of the euro.
Hong Kong stocks slumped more than five per cent and in Tokyo, the Nikkei ended down almost three per cent.
Investors in Asia took succour on Wednesday from Italian Prime Minister Silvio Berlusconi’s vow to resign once credible economic reforms are in place by the end of the month.
The Nikkei in Tokyo closed down 2.91 per cent, or 254.64 points, at 8,500.80 and Sydney ended 2.35 per cent, or 102 points, lower at 4,244.1.
The Hang Seng in Hong Kong slumped 5.25 per cent, or 1,050.54, to 18,963.89 while Shanghai shed 1.80 per cent, or 45.38 points, to 2,479.54.
Seoul dived 4.94 per cent, or 94.28 points, to 1,813.25.
Selling pressure on the Tokyo bourse also increased after official data showed Japan’s machinery orders for September fell 8.2 per cent from the previous month, worse than the market’s expectation for a 7.1 per cent fall.
Oil prices inched lower in Asian trade, hurt by fears that the eurozone’s debt crisis could cast a pall over global energy demand.
WELLINGTON – Wellington was down 1.03 per cent, or 34.69 points, at 3,318.87.
