December 6, 2013
US shares edge up on budget deal hopes
Global equity markets rebounded today on news of a planned meeting between President Barack Obama and leaders in Congress to discuss an impasse over how to extend the US debt ceiling and end a partial government shutdown.
The lack of an expected deal over the weekend to avert a looming US debt default as early as October 17 weighed on world equity markets earlier in the day and kept the dollar under pressure.
The Dow Jones industrial average closed up 64.15 points, or 0.42 percent, at 15,301.26. The Standard & Poor's 500 Index rose 6.94 points, or 0.41 percent, at 1,710.14. The Nasdaq Composite Index gained 23.40 points, or 0.62 percent, at 3,815.28.
European equities were little changed today as weakness in technology shares, after a warning from Dassault on revenue growth, offset gains in defensive stocks.
Concerns about any impact from the US budget impasse and fears of slower growth in China hurt cyclicals most. Financials, mining, cars and technology sectors were all weaker. The auto sector fell 0.5 percent and banks 0.4 percent.
Figures showing China's exports fell in September hurt sentiment as the data disappointed investors who were banking on a continuation of recent positive numbers.
Those concerns prompted investors to take refuge in defensives, with utilities and telecoms up 0.6 percent and 1 percent respectively, supporting the FTSEurofirst 300, which was flat at 1,250.57 points by 1036 GMT.
The STOXX Europe 600 technology index was the top sectoral decliner, down 1.1 percent, led by a 7 percent drop in French software maker Dassault which warned of sluggish orders, especially in Asia.