Translate This Page

Tuesday, September 13, 2011

US Stocks rally on hopes that China will buy Italy's bonds (ext.)

NEW YORK (CNNMoney) -- Stocks finished a choppy session higher Monday, as investors who have been worried about a deepening European debt crisis pinned their hopes on a report that China is in talks with Italy to buy the cash-strapped country's debt.

The Dow Jones industrial average (INDU) added 69 points, or 0.6%. Earlier, the blue chip index was down as much as 167 points.

The S&P 500 (SPX) rose 8 points, or 0.7%, and the tech-heavy Nasdaq composite (COMP) gained 27 points, or 1.1%.

But stocks gained some traction, turning modestly higher during the final hour of trading, after the Financial Times said China's government may make "significant purchases of Italian bonds and investments in strategic companies."

If China indeed comes to the rescue of debt-ridden Italy, "it would be a welcome sign of improving stability" in the ongoing European debt crisis, said Michael James, senior equity trader at Wedbush Morgan Securities.

The dollar turned lower against the euro following the report suggesting that China may resuce Italy from its debt woes.

The greenback rose versus the British pound, but slipped against the Japanese yen.

Oil for October delivery rose 95 cents to settle at $88.19 a barrel.

Gold futures for December delivery fell $46.20 to $1,813.30 an ounce.

No comments: