December 6, 2013
Wall Street ends sharply higher in hopes of fiscal deal
US stocks closed more than 1 percent higher after Senate leaders said they had a deal to reopen the federal government and raise the debt ceiling, avoiding the threat of a debt default.
The Dow Jones industrial average .DJI was up 201.39 points, or 1.33 percent, at 15,369.40. The Standard & Poor's 500 Index .SPX was up 23.24 points, or 1.37 percent, at 1,721.30. The Nasdaq Composite Index .IXIC was up 45.42 points, or 1.20 percent, at 3,839.43.
European shares rose today with a blue-chip benchmark hitting a 2-1/2 year high, propelled by expectations of an imminent deal in Washington to avert a US debt default.
"There's a strong consensus that a deal is about to be reached," said Christian Jimenez, fund manager and president of Diamant Bleu Gestion, in Paris.
"The 'great rotation' in asset allocation in favour of stocks is intact, although we need to see some improvement in the micro side. With all the negative surprises coming from companies recently, we're not there yet."
The FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,265.25 points, while the euro zone's blue-chip Euro STOXX 50 index was up 0.3 percent at 3,012.74 points, piercing 3,000 for the first time since May 2011.Meanwhile, Japan's Nikkei average eked out a sixth straight session of gains in choppy trade hitting a two-week closing high, as investors awaited developments in Washington on a deal to avert a US debt default ahead of Thursday's deadline.
The benchmark Nikkei gained 0.2 percent to 14,467.14, its highest closing level since Oct. 1. It has climbed 4.4 percent over the past six sessions, marking its longest winning streak in 7-1/2 months.
The broader Topix eased 0.1 percent to 1,196.78 in thin trade, with trading volume hitting a two-month low of 1.78 billion shares.