Monday, March 11, 2013

US stocks extend winning streak, as European shares drop

Wall Street stocks rose today, driving the Dow to another record high, on optimism about the US economy, while US oil prices rebounded after disappointing Chinese industrial data spurred an initial drop.

The Dow closed up 50.22 points, or 0.35 percent, at 14,447.29. The S&P 500 finished up 5.04 points, or 0.32 percent, at 1,556.22. The Nasdaq Composite Index ended up 8.51 points, or 0.26 percent, at 3,252.87.

The Dow has gained over 10 percent for the year, while the S&P 500 is up more than 9 percent.

Banking stocks held European shares below 4-1/2 years highs today as investors fretted about Italy's public finances, even though a late recovery showed underlying appetite for equities.

The STOXX euro zone banking index shed 0.8 percent as Friday's downgrade of Italy's sovereign debt triggered a selloff in shares in the country's banks, which own much of Rome's public debt.

Banks weighed on the pan-European FTSEurofirst 300 index, which fell 0.1 percent to 1,194.64 points, further slipping from a high of 1,197.73 hit on Friday and previously not seen since 2008.

The Nikkei share average closed at a 4-1/2-year high as investors bought financials and exporters after the yen weakened on signs of recovery in the US economy, while hopes for monetary easing aided risk appetites.

The Nikkei closed up 0.5 percent to 12,349.05, a level not seen since just before the collapse of Lehman Brothers roiled global markets in September 2008.