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US stocks in solid gains after EU deal
December 10, 2011, Saturday
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US stocks ended another rocky week with solid gains yesterday after European Union leaders, except Britain, set a tentative pact on tougher fiscal discipline.
The Dow Jones Industrial Average closed up 186.56 points (1.55 percent) to 12,184.26.
The broader S&P 500 jumped 20.84 (1.69 percent) to 1,255.19, while the tech-rich Nasdaq Composite gained 50.47 (1.94 percent) to 2,646.85.
EU leaders meeting in Brussels on the eurozone crisis gave a boost to markets when they declared their willingness to join a "new fiscal compact" that would bring uniform discipline to government spending.
Britain's stance prevented a move to add the new rules into the EU treaty for application to all 27 EU countries.
But the deal will still set the standards for the 17 eurozone countries and the nine non-euro EU countries that agree to it.
The move, tentative and not altogether convincing to some analysts, gave a modest boost to the euro. There were still worries that Standard & Poor's, after warning of a possible credit rating downgrade to eurozone countries on Monday, might follow through in the coming days if it finds the commitments to the new fiscal rules too weak.
"The devil is in the details, and there, the details, we do not know everything," said Gregori Volokhine of Meeschaert.
The summit "does nothing to address the credit crunch that is developing in Europe," said economist Desmond Lachman of the American Enterprise Institute.
"Their failure today to agree on Treaty change to include legally binding rules for budget deficit reduction, leaves the European Central Bank with little cover to support the Italian and Spanish bond markets."
Oil and big international bank stocks were gainers on the news, despite the doubters. ExxonMobil added 1.8 percent, following oil prices higher.
Morgan Stanley rose 3.2 percent and Citigroup 3.7 percent.
Dupont was the only decliner among the Dow's 30 blue chips, losing 3.2 percent after dimming its outlook for earnings this year, citing slower growth than expected.
On the Nasdaq, Oracle surged 3.1 percent while Google picked up 1.9 percent.
Bond prices fell. The yield on the 10-year Treasury rose to 2.05 percent from 1.97 percent late Thursday, while the 30-year edged up to 3.10 percent from 3.00 percent.
Bond prices and yields move in opposite directions.
-AFP
The Dow Jones Industrial Average closed up 186.56 points (1.55 percent) to 12,184.26.
The broader S&P 500 jumped 20.84 (1.69 percent) to 1,255.19, while the tech-rich Nasdaq Composite gained 50.47 (1.94 percent) to 2,646.85.
EU leaders meeting in Brussels on the eurozone crisis gave a boost to markets when they declared their willingness to join a "new fiscal compact" that would bring uniform discipline to government spending.
Britain's stance prevented a move to add the new rules into the EU treaty for application to all 27 EU countries.
But the deal will still set the standards for the 17 eurozone countries and the nine non-euro EU countries that agree to it.
The move, tentative and not altogether convincing to some analysts, gave a modest boost to the euro. There were still worries that Standard & Poor's, after warning of a possible credit rating downgrade to eurozone countries on Monday, might follow through in the coming days if it finds the commitments to the new fiscal rules too weak.
"The devil is in the details, and there, the details, we do not know everything," said Gregori Volokhine of Meeschaert.
The summit "does nothing to address the credit crunch that is developing in Europe," said economist Desmond Lachman of the American Enterprise Institute.
"Their failure today to agree on Treaty change to include legally binding rules for budget deficit reduction, leaves the European Central Bank with little cover to support the Italian and Spanish bond markets."
Oil and big international bank stocks were gainers on the news, despite the doubters. ExxonMobil added 1.8 percent, following oil prices higher.
Morgan Stanley rose 3.2 percent and Citigroup 3.7 percent.
Dupont was the only decliner among the Dow's 30 blue chips, losing 3.2 percent after dimming its outlook for earnings this year, citing slower growth than expected.
On the Nasdaq, Oracle surged 3.1 percent while Google picked up 1.9 percent.
Bond prices fell. The yield on the 10-year Treasury rose to 2.05 percent from 1.97 percent late Thursday, while the 30-year edged up to 3.10 percent from 3.00 percent.
Bond prices and yields move in opposite directions.
-AFP
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