Global shares lose steam on downgrade worries
Global stocks and the euro cut gains on Monday as a report that euro zone countries faced a warning over a possible downgrade offset optimism that policymakers could reach a credible solution to the sovereign debt crisis.
Standard & Poor's has warned Germany, France and four other AAA-rated euro zone countries that they might get downgraded in the next 90 days, the Financial Times reported.
The Dow Jones industrial average was up 57.97 points, or 0.48 percent, at 12,077.39. The Standard & Poor's 500 Index rose 10.91 points, or 0.88 percent, to 1,255.19. The Nasdaq Composite Index gained 26.55 points, or 1.01 percent, to 2,653.48.
European stocks rose to a five-week closing high, after French president Nicolas Sarkozy and German chancellor Angela Merkel agreed on a range of measures to help resolve the euro zone debt crisis.
The FTSEurofirst 300 index of top European shares rose 0.8 percent to 993.27 points, the highest close since Oct. 31 and following last week's 8.5 percent jump, on growing optimism that action will be taken to stem the crisis.
In Asia, the Nikkei stock average edged higher today to build on last week's hefty gains, helped by improved sentiment towards the European debt crisis although uncertainty about how markets will assess Italy's new austerity plan capped the upside.The Nikkei rose 0.6% to 8,695.98, adding to its 6% gain last week and jumping above its 25-day moving average of 8,573. The broader Topix also added 0.6% to 748.61.
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