US stocks snap five-day losing streak

NEW YORK—US stocks notched their first gain of the week yesterday after Spain announced severe budget cuts intended to convince the world that it can meet deficit-reduction targets. It was the best day for the US market since September 13, when Federal Reserve Chairman Ben Bernanke announced further steps by the central bank to speed the economic recovery. Stocks were also helped by speculation that the central bank of China will act soon to help the world’s No. 2 economy. The Dow Jones industrial average climbed 72.46 points, or 0.5 per cent, to close at 13,485.97. It was the Dow’s first gain in five trading sessions. The Standard & Poor’s 500 index, after five days of declines, closed up 13.83 points, or just shy of one per cent, at 1,447.15. The Nasdaq composite index rose 42.90 points to 3,136.60.

 

Stocks rose 0.5 per cent in Japan and 1.1 per cent in Hong Kong. In Europe, stocks came back from one of their worst days in months. The benchmark stock index finished 0.7 per cent higher in France and 0.2 per cent higher in Germany and Britain. Borrowing costs for financially troubled Spain and Italy also edged down, a positive sign. In the US the yield on the ten-year treasury note, rose 0.03 percentage point to 1.65 per cent. The price of crude oil rose US$1.87 to US$91.85 per barrel as concerns mounted about a potential military confrontation over Iran’s nuclear programme. Oil had dropped US$9 a barrel in two weeks.