May 21, 2013
US stocks jump 1%
US stocks jumped about 1 percent at the open as the euro rose against the dollar and commodities prices climbed on optimism that new aid for Greece was on the horizon.The Dow Jones industrial average shot up 128.21 points, or 1.03 percent, to 12,569.79. The Standard & Poor's 500 Index gained 14.10 points, or 1.06 percent, to 1,345.20. The Nasdaq Composite Index rose 38.44 points, or 1.37 percent, to 2,835.30.
European shares hit a 2-1/2 week closing high, with appetite for riskier assets boosted by expectations a second aid package for Greece would be agreed, lowering the risk of a near-term debt restructuring.The pan-European FTSEurofirst 300 index of top shares ended 0.8 percent higher at 1,142.18 points, its highest closing level since May 12.
The benchmark is on course to fall 1 percent for the month of May, having risen 2 percent in 2011.The European Union raced to draft a fresh bailout package for indebted Greece to release vital loans next month and avert the risk of the euro zone country defaulting.
Banks, many of which have exposure to Greek and other euro zone peripheral debt, were among the biggest risers. Heavyweight banks to rise included Deutsche Bank, Societe Generale, Intesa SanPaolo and UniCredit, up between 2.2 and 2.7 percent.
Greek banks rose 4.8 percent.Across Europe, Germany's DAX rose 1.9 percent; France's CAC40 and Britain's FTSE 100 rose 1.4 and 1 percent respectively.
The Nikkei average rose 2 percent, encouraged by manufacturers' predictions of stronger output in the coming months and by a weaker yen after the euro climbed and Moody's put Japan's credit ratings on review for possible downgrade. The benchmark Nikkei share average rose 1.99 percent to 9,693.73, posting its biggest one-day percentage gain in two months, while the broader Topix gained 1.80 percent to 838.48.