Thursday, March 3, 2011

Jobs data optimism fuels Wall Street rally

Investors betting on a big gain in US payrolls pushed Wall Street to its best one-day rally in three months, but weak volume lingers as a concern for those hoping for another leg higher.

The Dow Jones industrial average was up 191.40 points, or 1.59 percent, at 12,258.20. The Standard & Poor's 500 Index was up 22.53 points, or 1.72 percent, at 1,330.97. The Nasdaq Composite Index was up 50.67 points, or 1.84 percent, at 2,798.74.

Expectations that euro zone interest rates could rise earlier than forecast rattled equity investors, with shares in peripheral euro zone states hit hardest on concerns that higher lending rates would hit the fragile recovery.

The pan-European FTSEurofirst 300 share index closed 0.2 percent higher at 1,155.94 points, but dropped from earlier highs of 1,166.01 points after hawkish comments from the European Central Bank (ECB) following its monthly meeting.

Japan's Nikkei benchmark closed higher, recouping some of the previous session's losses, with upbeat US economic data helping offset worries about surging oil prices due to turmoil in the Middle East.

The benchmark Nikkei ended the day up 0.9 percent, or 93.64 points, at 10,586.02. The broader Topix gained 0.6 percent to 948.69.