Wall Street rebounds on improving US economy
MARKET CLOSE: US stocks rose, ending a three-day run of losses that took 3% off the blue chip Dow index.
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Stocks on Wall Street rebounded after three-day run of losses that took 3% off the blue chip Dow index.
Further signs of an improving US labour market and manufacturing output helped buoy investor confidence, though stocks lost momentum after IMF chief Christine Lagarde warned of a gloomy outlook for the global economy.
Stocks rose after new jobless claims fell well below forecasts to their lowest since May 2008.
Meanwhile, the Federal Reserve Bank of Philadelphia's gauge of mid-Atlantic manufacturing activity also rose much more than forecast.
The Dow Jones Industrial Average was up 46.34 points, or 0.4%, to 11,870.02 iat the close (10am NZ time), after advancing by triple digits early in the session.
The gains followed a 131-point drop on Wednesday that stretched the measure's decline for the week to 361 points, or 3%.
The S&P 500 index advanced 0.3%, to 1215.83, while the Nasdaq Composite put on 0.1%, to 2541.01.
Other markets: Europe up, Asia down
European markets finished higher, with the Stoxx Europe 600 up 1%.
Manufacturing activity in the eurozone contracted at a slower pace than expected in December, while Germany's preliminary December figures rose versus the previous month. A successful Spanish bond auction also lifted investor spirits.
Asian exchanges fell, with China's Shanghai Composite shedding 2.1% to its lowest close since March 2009. China manufacturing activity contracted again in December, although at a slower rate than in November.
In commodities, crude-oil futures lost 0.8% to $US94.19 a barrel, while gold futures lost 0.6% to $US1576.90 an ounce after plunging 4.6% on Wednesday.
The euro gained slightly versus the dollar but remains under $US1.30. It dropped to its lowest point since January on Wednesday, bogged down by doubts that the euro-zone bailout fund will have enough firepower to stem the crisis.
Nevil Gibson
Fri, 16 Dec 2011
Fri, 16 Dec 2011
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Wall Street rebounds on improving US economy
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