Tuesday, July 3, 2012

Wall Street gains for third day as stimulus hopes rise

US stocks extended a rally for a third day as sharp gains in oil prices lifted energy shares and traders factored in increased expectations for central bank stimulus.

The Dow Jones industrial average gained 72.43 points, or 0.56 percent, to 12,943.82. The Standard & Poor's 500 Index rose 8.51 points, or 0.62 percent, to 1,374.02. The Nasdaq Composite Index added 24.85 points, or 0.84 percent, to 2,976.08.

European shares joined a global rally in stocks today as expectations rose that major central banks will take more action to support the world economy, after factory data highlighted the drag on growth from the euro zone debt crisis.

Equity markets were mostly focused on the July 5 meeting of the European Central Bank, when it is widely expected to cut its main interest rate by 25 basis points to 0.75 percent.

The FTSE Eurofirst 300 index of top European companies gained 0.3 percent to 1038.43 points, adding to a 4.2 percent jump seen since Friday.

In Asia, Nikkei share average rose to an 8-week high as investors bet major central banks will roll out more growth-boosting stimulus measures following unexpectedly poor US factory data.

The Nikkei settled up 0.7 percent at 9,066.59 points, its highest close since it ended at around 9,181 on May 8, but it fell short of its yesterday intraday high. The broader Topix index gained 1 percent to 777.11, its highest close since May 8.