Wednesday, October 5, 2011

Global shares rebound as Europe explores ways to recapitalise banking sector

US stocks floated higher as stronger-than-expected US economic data and signs that officials were moving forward to prop up struggling European banks reassured nervous investors.

The Dow Jones industrial average closed up 131.24 points, or 1.21 percent, at 10,939.95. The Standard & Poor's 500 Index rose 20.09 points, or 1.79 percent, at 1,144.04. The Nasdaq Composite Index climbed 55.69 points, or 2.32 percent, at 2,460.51.

European shares rose today, snapping three days of losses, after policymakers agreed to strengthen the struggling banking sector and a better-than-expected report on the US service sector boosted optimism about US growth.

The pan-European FTSEurofirst 300 index provisionally closed up 3.1 percent at 915.19 points after falling 2.7 percent yesterday’s on concerns about a Greek default after an aid payment was delayed.

Japanese stocks gave up early gains and ended lower today, with the broad Topix index hitting its lowest level since the March earthquake as foreign investors showed little sign of slowing their retreat from the market.

The Nikkei closed down 0.9 percent while the broader Topix fell 1.4 percent. It broke below the 725.9 hit after the March disaster but closed above that mark.