Thursday, October 6, 2011
World stocks climb on Europe debt action hopes
By KELVIN CHAN - AP Business Writer | AP – 23 mins ago
Oil prices rose above $80 a barrel while the
dollar fell against the euro and the yen.
In early European trading, Britain's FTSE 100
rose 1.2 percent to 5,161.65 and Germany's DAX added 1.4 percent to 5,546.83.
France's CAC 40 advanced 2.2 percent to 3,039.73. Wall Street was set to gain with Dow
futures up 0.7 percent at 10,912.
In Asia, Japan's Nikkei index rose 1.7
percent to 8,522.63 and South Korea's Kospi index jumped 2.6 percent to
1,710.32. Hong Kong's Hang Seng index surged 5.7 percent to 17,172.28.
Benchmarks in Taiwan, Singapore and Australia
also rose. Markets in mainland China were closed for a holiday.
Global stock markets are recouping some of
their losses after a rough start to the week prompted by procrastination and
confusion among European leaders as they tried to get a handle on the
continent's debt crisis.
Those worries were eased after reports
Wednesday indicating that policymakers were working to coordinate and bolster
action. The International Monetary Fund called again on European leaders to
quickly steel banks against worsening market panic. German Chancellor Angela Merkel said she
would support a Europe-wide plan to recapitalize banks if it was deemed
necessary.
"There's good news coming out of Europe,"
said Jackson Wong, a vice president at Tanrich Securities in Hong Kong, although
he warned that markets would likely remain choppy.
"Today everything seems fine, however the
overall problems are still out there. Nothing has been resolved" with Europe's
debt crisis, he said.
Investors are looking to a U.S. government report on employment due Friday following some positive economic indicators on Wednesday that buoyed Wall Street.
A service sector survey indicated that
economic growth might improve, while another report by a payroll processing
company beat expectations with news that that private companies added slightly
more jobs in September than the month before. Many are hoping it foreshadows
similar good news for Friday's broader report.
In New York on Wednesday, Wall Street added to gains from the day before. The Dow Jones industrial average finished 0.8 percent higher at 10,899.35 and the broader Standard & Poor's 500 index rose 1.2 percent to 1,137.83.
In currencies, the euro rose to $1.3373 from $1.3351 late Wednesday. The dollar fell to 76.67 yen from 76.96.
Benchmark crude for November delivery was up
93 cents to $80.60 a barrel in electronic trading on the New York Mercantile
Exchange. The contract rose $4.01 to finish at $79.68 on
Wednesday.
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