A roundup of trading on major world markets:
NEW YORK – Wall Street rose once investors got the news they had been hoping for – Italian Prime Minister Silvio Berlusconi would resign once a new budget was passed.
with an hour left to trade the Dow Jones industrial was up 70.61 points, or 0.59 per cent, at 12,139, while the Standard & Poor’s 500 index was up 10.54 points, or 0.84 per cent, at 1,271.66.
The Nasdaq Composite index was up 23.51 points, or 0.87 per cent, at 2,718.76.
Italy became a key focus for investors this week after doubts emerged that the country would go through with a tough package of austerity measures. Many investors saw Berlusconi as an obstacle to sweeping economic reforms that would be needed to help Italy cut its debt load and avoid sinking into a debt crisis.
Yields on Italian government bonds spiked close to seven per cent Tuesday, a sign that markets are questioning the country’s ability to pay its debt.
Unlike Greece, Portugal or Ireland – all of which received financial lifelines – Italy has too much debt to be rescued by its European neighbours.
US stock indexes turned lower after Berlusconi narrowly survived a confidence vote, an indication that he might continue to cling to power.
Indexes turned higher immediately after headlines at around 1400 in New York saying that Berlusconi had promised to step down after the Italian parliament passes economic reforms being demanded by the European Union.
In other news, the US Labor Department said employers advertised more jobs in September than at any other point in the past three years.
The seven per cent increase in job openings are a hopeful sign that companies may step up hiring.
LONDON – European stock markets closed up but off their highs after Italian Prime Minister Silvio Berlusconi lost his majority in parliament.
That stoked uncertainty further as the eurozone tries to resolve a deep-seated debt crisis.
Berlusconi won a technical vote on a 2010 budget report but lost his absolute majority in the process, sparking calls for him to resign immediately and dashing investor hopes for a clear-cut decision.
After markets closed, Berlusconi said he would resign after parliament passes economic reforms.
The parliamentary vote came at the end of a day when borrowing costs for Italy, the eurozone’s third largest economy and seen as in serious peril of falling victim to the debt crisis, soared to record highs.
Milan stocks rose more than 2.3 per cent earlier in the day on the view a Berlusconi resignation and a new government would spark a strong relief rally.
With the outlook suddenly clouded again, Milan finished up 0.74 per cent.
In London, the FTSE 100 index of top companies put on 1.03 per cent at 5,567.34 points.
In Paris, the CAC-40 rose 1.28 per cent to 3,143.30 points.
In Frankfurt, the DAX 30 added 0.55 per cent to 5,961.44 points, with both markets earlier showing gains of more than two per cent.
While Greek political leaders bickered over forming a new government to implement the latest EU bailout, all eyes shifted to Rome as eurozone leaders expressed alarm at events in Italy which is saddled with a 1.9 trillion euros ($A2.53 trillion) debt mountain.
HONG KONG – Asian markets were mixed as Italy’s deepening debt and political crisis overshadowed progress by Greece, another stricken eurozone member, towards installing a new government.
Hong Kong was flat, lifting 0.58 points, to 19,678.47, while Seoul shed 0.83 per cent, or 15.96 points, to 1,903.14.
Shanghai slipped 0.24 per cent, or 5.96 points, to 2,503.84.
Tokyo stocks fell 1.27 per cent, or 111.58 points, to 8,655.51.
The broader market was dragged down by a 29 per cent slump for Olympus after the company said that a panel’s probe into some of its past deals found they were used to cover up huge losses on investments in the 1990s.
The camera maker has now lost 70 per cent of its value since its British former CEO raised questions about four takeovers and the payment of massive advisory fees.
WELLINGTON – New Zealand shares rose, nudging the NZX 50 Index to a month high.
Trading was lighter-than-average as Fairfax Media’s Trade Me float and further European uncertainty kept some investors on the sidelines.
The NZX 50 rose 9.05 points, or 0.3 per cent, to 3,351.23. Within the index, 23 shares rose, 15 fell and 12 were unchanged.
Turnover was $NZ81.5 million, below the $NZ100 million daily average during October.
