Wednesday, May 25, 2011

Wall Street advances; European stocks bounce back

US stocks ended a three-day losing streak on Wednesday as recent underperformers led a thinly traded rally that wasn't seen as strong enough to overcome worries about waning global demand.

The Dow Jones industrial average gained 38.45 points, or 0.31 percent, to end at 12,394.66. The Standard & Poor's 500 Index advanced 4.19 points, or 0.32 percent, to 1,320.47. The Nasdaq Composite Index rose 15.22 points, or 0.55 percent, to 2,761.38.

European stocks rose, led by a rally in recently sold down banking stocks, although the rebound was seen short lived as simmering worries over Greece's debt kept long-term buyers at bay.

The FTSEurofirst 300 index of top European shares ended 0.7 percent higher at 1,127.06 points, but the late rally failed to push the index back above its 50-day moving average crossed on Monday.

Japan's Nikkei share average fell to its lowest close in two months in thin trade as worries about the euro zone debt crisis and a slowdown in the US economy deterred investors from moving in to take advantage of cheap valuations.

The benchmark Nikkei average closed down 0.6 percent at 9,422.88, its lowest close since March 18, while the broader Topix shed 0.2 percent to 817.74.