Wednesday, June 27, 2012

Global shares extend gains after home sales data, summit eyed

US stocks added gains today after data showed contracts to purchase previously owned US homes matched a two-year high in May, fueling optimism the housing market is poised for a recovery.

The Dow Jones industrial average gained 93.32 points, or 0.74 percent, to 12,627.99. The Standard & Poor's 500 Index advanced 11.89 points, or 0.90 percent, to 1,331.88. The Nasdaq Composite Index added 21.26 points, or 0.74 percent, to 2,875.32.

In Europe, shares gained today, with some investors closing their short trading positions ahead of this week's European Union summit to protect themselves from possible losses in case of a positive annoucement.

The FTSEurofirst 300 index of top European shares was up 0.4 percent at 990.19 points, after falling nearly 3 percent in the past four sessions on fading hopes the summit would deliver bold measures. But reduced expectations also lowered the bar for a positive surprise.

In Asia, Nikkei average broke a three-session losing run on Wednesday, as investors snapped up construction and real estate shares on expectations they will benefit from a surge in housing demand ahead of a sales tax increase in 2014.

The Nikkei closed 0.8 percent higher at 8,730.49, breaching above 8,714.78, the 23.6 percent retracement of its fall from March 27 to June 4, but below its five-day moving average at 8,750.30. The broader Topix advanced 0.9 percent to 745.48.