Friday, August 10, 2012

US stocks manage 6th day of gains, European shares dip

US stocks notched a gain for the sixth session in a row on Friday, while the euro faltered as gloomy Chinese economic data butted up against expectations policymakers could act to shore up the world's economies.

The Dow Jones industrial average rose 42.76 points, or 0.32 percent, to 13,207.95 at the close. The Standard & Poor's 500 Index added 2.97 points, or 0.21 percent, at 1,405.77. The Nasdaq Composite Index advanced 2.22 points, or 0.07 percent, to close at 3,020.86.

European stocks dipped as soft Chinese economic data prompted investors to take a breather after a two-week rally, although a drop in the region's volatility index to a three-week low signalled rising investor appetite for risk.

The FTSEurofirst 300 index of top European shares closed 0.1 percent lower at 1,099.55 points, halting a two-week rally when it surged 8 percent, as data showed Chinese July exports rose just 1 percent from a year ago. That fuelled concerns about the pace of the world's second-biggest economy and global demand.

Japan's Nikkei share average fell today as investors lacked fresh incentives to buy, but the index still marked its biggest weekly gain since February following a four-day rally spurred by hopes for more global stimulus.

The Nikkei lost 1 percent to 8,891.44 points but advanced nearly 4 percent up on the week, its biggest gain since mid-February, after surfing a wave of short-covering triggered by better-than-expected US jobs figures last week.

The broader Topix dropped 0.7 percent to 746.79.