Friday, August 12, 2011

Wild week on Wall Street ends with subdued gains

After one of the most volatile weeks in memory, US stocks ended higher in a tentative sign that the worst of the selling may be over.

Volume was much lighter than on any other day of the week and intraday swings were far less violent than in previous days. Both signs suggested a drop in investor anxiety.

The Dow Jones industrial average gained 125.71 points, or 1.13 percent, to 11,269.02. The Standard & Poor's 500 Index added 6.17 points, or 0.53 percent, to 1,178.81. The Nasdaq Composite Index rose 15.30 points, or 0.61 percent, to 2,507.98.

European shares gained as a short-selling ban on financial stocks by France, Italy, Spain and Belgium provided a relief rally in beaten-down banks, while strong US retail sales data also helped investor sentiment.

The pan-European FTSEurofirst 300 index of top shares closed up 3.6 percent at 968.21 points after being as low as 921.63.

Tokyo stocks dipped further below the 9,000 line, extending hefty losses sustained during the most volatile week since the March 11 earthquake as the yen's strength prompted foreigners to sell carmakers, pulling Toyota Motor to its lowest level this year.

The Nikkei lost 0.2 percent to end at 8,963.72, while the broader Topix fell 0.4 to 768.19. The Nikkei was down 3.6 percent on the week.