A roundup of trading on major world markets:
NEW YORK – US stocks closed higher overnight following strong bank earnings and a decline in applications for unemployment benefits.
The Dow Jones industrial average rose 45.03 points or 0.4% to 12,623.98, while the Standard & Poor’s 500 gained 6.46 points or 0.5% at 1,314.50.
The Nasdaq composite is up 18.62 points or 0.7% to 1,314.50.
Bank of America and Morgan Stanley rose after reporting results that were better than analysts had expected.
Bank of America returned to profit in the fourth quarter while Morgan Stanley’s loss was less than forecast.
The government also reported that the number of people seeking unemployment benefits plunged last week to the lowest level in more than three years.
LONDON – Another set of successful bond auctions in Europe and renewed confidence in the continent’s banks helped markets rally on Thursday as investors awaited developments in Greece’s debt-reduction talks with private creditors.
European banks, including those considered particularly susceptible to a further outbreak of unease in Europe, such as France’s Societe Generale and Italy’s UniCredit, were buoyed by the news that Germany’s second-largest bank, Commerzbank, won’t need help from shareholders or the government to boost its capital base.
France’s CAC-40 closed two per cent higher at 3,328.94, while Germany’s DAX rose 1 per cent to 6,416.26.
The FTSE 100 index of leading British shares ended 0.7 per cent higher at 5,741.15.
The recent easing in concerns over Europe’s debt crisis has helped the euro clamber off Monday’s 17-month low against the US dollar below $US1.27. By late afternoon in Europe it was trading at $US1.2940, up 0.6 per cent on the day.
HONG KONG – Asian markets mostly rose, tracking gains on Wall Street amid positive US economic data and International Monetary Fund plans to boost its coffers for crisis fighting.
But the Australian dollar took a hit after a mixed jobs report disappointed markets.
Tokyo rose 1.04 per cent, or 89.10 points, to 8,639.68 and Seoul jumped 1.19 per cent, or 22.58 points, to 1,914.97.
Hong Kong’s benchmark Hang Seng index closed 1.30 per cent higher, adding 256.03 points to 19,942.95 while Shanghai was 1.31 per cent, or 29.70 points, stronger at 2,296.08.
But Sydney nudged 3.1 points lower to 4,214.8.
On currency markets, the Australian dollar weakened to 103.88 US cents from 104.30 cents after official data showed the number of people employed fell by 29,300 to 11.4 million last month.
However, the overall unemployment rate remained steady at 5.2 per cent.
In currency markets, the euro bought $1.2886 and Y98.87 in early European trade, from $1.2862 and Y98.78 in New York late on Wednesday.
The dollar traded at Y76.72, also hardly changed from New York.
WELLINGTON – Wellington added 0.53 per cent, or 17.24 points, to end at 3,264.74.
