Thursday, July 21, 2011

US, EU upbeat debt news fuels rally

US stocks climbed as signs of progress on the US debt talks and concrete action from Europe on its own debt crisis heartened investors.

The Dow Jones industrial average gained 152.50 points, or 1.21 percent, to 12,724.41. The Standard & Poor's 500 Index rose 17.96 points, or 1.35 percent, to 1,343.80. The Nasdaq Composite Index advanced 20.20 points, or 0.72 percent, to 2,834.43.

European shares closed at their highest in nearly two weeks on Thursday on investor optimism about a plan for a wide-ranging response to the euro zone sovereign debt crisis.

The FTSEurofirst 300 index of leading European shares rose 1.1 percent to 1,103.12 points, its highest close since July 8 and its third straight day of gains.

The Nikkei stock average today held on to most of its strong gains made the day before, bolstered by hopes that a debt deal for Greece will be struck at an EU leaders' summit but capped near 10,000 by worries about the US debt ceiling. The benchmark Nikkei average was flat at 10,010.39. The index added 1.2 percent today. The broader Topix shed 0.1 percent to 860.11.