Friday, August 24, 2012

Global shares climb on ECB news, Bernanke

US stocks gained on Friday on news the European Central Bank is considering setting targets in a new bond-buying program that could help contain euro-zone borrowing costs and on hopes of more stimulus from the Federal Reserve.

The Dow Jones industrial average rose 100.51 points, or 0.77 percent, to 13,157.97 at the close. The Standard & Poor's 500 Index added 9.05 points, or 0.65 percent, to 1,411.13. The Nasdaq Composite Index gained 16.39 points, or 0.54 percent, to close at 3,069.79.

European shares closed fractionally higher after staging a late bounce when European Central Bank sources told Reuters the ECB was considering setting yield band targets.

The move will be part of a new bond-buying programme aimed at keeping the ECB's strategy shielded and avoiding speculators trying to cash in, the sources said.

The report lifted the FTSEurofirst 300 index, which closed 0.1 percent higher at 1,090.38 points, having traded as low as 1,083.10 points, or 0.5 percent lower, earlier in the session.

In Asia, Nikkei average shed 1.2 percent, retreating from yesterday's three-month closing high as investors locked in gains as expectations the stimulus measures from the Fed began to dim. The Nikkei closed down 107.36 points at 9,070.76.

The broader Topix index lost 1 percent to 757.23 in thin trade.