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New York - Better news from the US and the eurozone encouraged investors on Thursday, helping to support stocks and the euro on Thursday.
US weekly jobless benefits claims fell sharply to a five month low while revised data showed second quarter GDP grew slightly more than expected.
Germany’s parliament also overwhelmingly approved the plan agreed in July to expand the eurozone bailout fund.
“The vote in Germany was a cause for a lot of relief, but there will likely be more nervousness as we await a final resolution,” said Roger Volz, director of cash equities at BGC Financial in New York.
“We’re getting a bounce now,” he said, “(but) things are going to be messy for the next few days.”
In late morning trading the Dow Jones industrial average gained 179.56 points, or 1.63 percent, to 11,190.46. The Standard & Poor’s 500 Index <.SPX> gained 13.63 points, or 1.18 percent, to 1,164.69. The Nasdaq Composite Index gained 9.06 points, or 0.36 percent, to 2,500.64.
A gauge of top European shares closed 0.56 percent higher and an index of global equities rose 0.8 percent. US crude futures gained 1.5 percent.
Volatility is likely to remain high as markets react to European headlines and try to gauge the commitment of governments and institutions as they work to prevent a Greek debt default that could translate into a global economic slowdown.
A rebalancing of holdings as the third quarter draws to a close could also keep markets volatile.
From relief after the lawmakers’ vote in Berlin, the market’s European focus will next shift to Thursday talks between the European Union, IMF and Greece.
Auditors will see if Athens has done enough to receive the next tranche of aid.
The failure to find a definitive solution to the crisis has led to worries about contagion engulfing bigger euro zone economieslike Italy and Spain and triggered concerns about the health of the European banking system.
The euro rose 0.8 percent to around $1.3639, but it is still seen as vulnerable to selling pressures as investors cash in the gains.
“There’s been a little bit of a relief rally given that there was such strong support for the measure in Germany,” said Joe Manimbo, senior market analyst at Travelex Global Payments in Washington. “But being month end, the euro might be a sell up here at these higher levels.”
Despite the latest bounce, the euro has lost more than 5 percent against the dollar this month, hammered by mounting worries over the prospect of a Greek default and bickering among policymakers.
US weekly jobless benefits claims fell sharply to a five month low while revised data showed second quarter GDP grew slightly more than expected.
Germany’s parliament also overwhelmingly approved the plan agreed in July to expand the eurozone bailout fund.
“The vote in Germany was a cause for a lot of relief, but there will likely be more nervousness as we await a final resolution,” said Roger Volz, director of cash equities at BGC Financial in New York.
“We’re getting a bounce now,” he said, “(but) things are going to be messy for the next few days.”
In late morning trading the Dow Jones industrial average gained 179.56 points, or 1.63 percent, to 11,190.46. The Standard & Poor’s 500 Index <.SPX> gained 13.63 points, or 1.18 percent, to 1,164.69. The Nasdaq Composite Index gained 9.06 points, or 0.36 percent, to 2,500.64.
A gauge of top European shares closed 0.56 percent higher and an index of global equities rose 0.8 percent. US crude futures gained 1.5 percent.
Volatility is likely to remain high as markets react to European headlines and try to gauge the commitment of governments and institutions as they work to prevent a Greek debt default that could translate into a global economic slowdown.
A rebalancing of holdings as the third quarter draws to a close could also keep markets volatile.
From relief after the lawmakers’ vote in Berlin, the market’s European focus will next shift to Thursday talks between the European Union, IMF and Greece.
Auditors will see if Athens has done enough to receive the next tranche of aid.
The failure to find a definitive solution to the crisis has led to worries about contagion engulfing bigger euro zone economieslike Italy and Spain and triggered concerns about the health of the European banking system.
The euro rose 0.8 percent to around $1.3639, but it is still seen as vulnerable to selling pressures as investors cash in the gains.
“There’s been a little bit of a relief rally given that there was such strong support for the measure in Germany,” said Joe Manimbo, senior market analyst at Travelex Global Payments in Washington. “But being month end, the euro might be a sell up here at these higher levels.”
Despite the latest bounce, the euro has lost more than 5 percent against the dollar this month, hammered by mounting worries over the prospect of a Greek default and bickering among policymakers.
