Weekend markets: World stocks soar

Stocks on Wall Street soared for a second straight day of triple-digit gains for the Dow Jones Industrial Average.

The Dow surged 259.89 points, or 2.2%, to 12,153.68 at the close (10am NZ time). This follows a 113-point rise on Thursday, helping the blue-chip index recover more than it lost during Wednesday's drubbing.

The surge also pushed the Dow into positive territory for the week. The push came from a combination of events in Europe and more signs of an improving US economy.

Italy's senate approved the 2012 budget bill, which contains reforms to help boost the economy and improve business prospects.

If the bill is approved by the lower house this weekend, it will pave the way for Prime Minister Silvio Berlusconi to resign.

He is expected to be replaced by technocratic cabinet led by Mario Monti. Italian bond yields eased further, to 6.48%, continuing their retreat from euro-era highs earlier this week.

Meanwhile, in Greece, interim Prime Minister Lucas Papademos appointed a new cabinet, which will be tasked with implementing that country's latest bailout.

In the US, consumer-sentiment levels moved higher this month.

The better-than-expected report underscored the continued improvement US economic data have shown over the past few weeks. Jobless claims on Thursday fell to their lowest level in seven months.

Walt Disney led the blue chips higher, rising 6% after a 30% jump in fourth-quarter profit. All 30 Dow components traded in positive territory.

The S&P 500 index added 2%, to 1263.85, led higher by consumer discretionary, material and industrial stocks. All 10 S&P 500 sectors rose.

The technology-oriented Nasdaq Composite was also up 2% to 2678.75.

Other markets: Europe, Asia up
European stocks rallied, lifting the Stoxx Europe 600 index 2.4% to 240.98, a 0.5% rise for the week.

France's CAC-40 index jumped 2.8% to 3149.38, the DAX 30 index advanced 3.2% to 6057.03 and the UK's FTSE 100 index rose 1.9% to 5545.

Most Asian stock markets ended modestly higher after choppy trade.

Japan's Nikkei Stock Average rose 0.2%, Korea's Kospi jumped 2.8% and Australia's S&P/ASX 200 index gained 1.2%.

Hong Kong's Hang Seng Index tacked on 0.9%, while China's Shanghai Composite edged up 0.1%.

Commodities: Oil, gold higher
Crude futures moved slightly higher, pausing with prices near triple digits as traders weighed falling inventories versus the debt crisis in Europe.

Light, sweet crude for December delivery traded 90USc, or 0.9%, higher at $US98.68 a barrel in New York. Brent crude on the ICE futures exchange traded up 40USc, or 0.3%, at $US114.40 a barrel.

Gold futures edged higher. The most actively traded contract, for November delivery, was recently up $US15.90, or 0.9%, at $US1774.80 an ounce in New York.

Currencies: Euro rebounds
The euro rebounded as fears about Italian debt subsided It was at $US1.3785 compared with $US1.3610 late on Thursday.

The US dollar was at ¥77.13, compared with ¥77.65, while the euro was at ¥106.32 compared with ¥105.65.

The UK pound bought $US1.6083 from $US1.5935, while the dollar traded at 0.8990 Swiss franc from 0.9059 franc.