Tuesday, October 18, 2011

Wall Street edges higher, led by financials

US stocks rose, led by financials, as better-than-expected bank earnings overshadowed new worries about the crisis in Europe fueled by a warning over France's credit rating.

The three major indexes spent the early part of the session in negative territory before banks led the way higher. The KBW bank index advanced nearly 4 percent.

Volatility was still evident as US stocks suffered their worst loss in two weeks yesterday on the heels of its first two-week rally since July.

The Dow Jones industrial average was up 180.05 points, or 1.58 percent, at 11,577.05. The Standard & Poor's 500 Index was up 24.52 points, or 2.04 percent, at 1,225.38. The Nasdaq Composite Index was up 42.51 points, or 1.63 percent, at 2,657.43

European shares fell for a second straight day today, with investors cutting their exposure to riskier assets after Moody's warned on France's credit rating outlook and data showed slower growth in China, the world's second-biggest economy.

The pan-European FTSEurofirst 300 index was down 0.6 percent at 960.31 points following a 1 percent fall yesterday after German Finance Minister Wolfgang Schaeuble said it was unrealistic to expect a definitive solution to the euro zone debt crisis at an European Union summit this weekend.

The pan-European FTSEurofirst 300 index of top shares closed down 0.4 percent at 962.13 points and is down 13.2 percent since late July as worries have risen about a slowdown in global growth and contagion in the euro zone debt crisis.

Japan's Nikkei share average fell 1.6 percent in thin trade today, slipping from a six-week high on concerns that Europe's plan to contain its debt crisis might not be as fast and comprehensive as some investors had expected.

The Nikkei average closed down 1.6 percent at 8,741.91, while the broader Topix index lost 1.4 percent to 751.24. More than six shares fell for each one that rose.