Stocks rise, gold recovers in global markets
NEW YORK: World stocks and the euro rose yesterday on improved risk appetite fuelled by upbeat US data and corporate results, while gold snapped a four-day losing streak, bouncing off its lowest level since late September.
Government data showed US inflation pressure waning, fanning expectations the Federal Reserve could do more to boost economic growth. The latest consumer price report followed data on Thursday suggesting a possible pick-up in job growth.
Anxiety over potential ratings downgrades in European sovereign debt and their repercussion on the region’s banks underpinned safety bids for US and German government bonds. Investor fears about the euro zone debt crisis have receded.
The MSCI world equity index rose 0.56 percent after hitting a three-week low on Thursday. The index is still down 3 percent on the week and off 10 percent on the year.
The Dow Jones industrial average was up 78.26 points, or 0.66 percent, at 11 947.07. The Standard & Poor’s 500 Index was up 12.83 points, or 1.06 percent, at 1 228.58. The Nasdaq Composite Index was up 39.10 points, or 1.54 percent, at 2 580.11. – Reuters