Stock-market Looking Brighter Upon European Rescue

Oct 28, 2011, 08:40 by R.E. Christian

U.S. markets bolted higher Thursday after European leaders announced a deal to expand on rescue efforts for debt-burdened countries and help banks.

The agreement calls for an expansion of the European Financial Stability Facility from $600 billion to $1.4 trillion, dedicates more aid to Greece and calls for an additional $150 billion to give 70 of Europe's largest banks extra cushion in the event of further economic deterioration.

The U.S. Labor Department said first-time jobless benefit claims fell by 2,000 in the latest week to 402,000. The Department of Commerce in the first of three assessments of the third quarter said the U.S. gross domestic product for July through September rose 2.5 percent on an annual basis.

By close of trading on Wall Street, the Dow Jones industrial average added 335.88 points, 2.83 percent, to 12,204.92. The Standard & Poor's 500 index added 41.47 points, 3.34 percent, to 1,283.47. The Nasdaq composite index added 91.99 points, 3.47 percent, to 2,742.66.

Investor confidence grew with stocks higher in Asia and Europe. The Nikkei 225 index in Japan added 2.04 percent, 178.07 points, to 8,926.54. In Germany, the DAX 30 gained 5.35 percent. In France, the CAC 40 added 6.28 percent.

In Britain, the FTSE 100 index added 2.89 percent, 160.58, to 5,713.82.

The benchmark 10-year treasury note fell 1 10/32 to yield 2.36 percent.

The euro rose to $1.4227 from Wednesday's $1.3906. Against the yen, the dollar fell to 75.91 yen from Wednesday's 76.16 yen.

Source: UPI