الرئيسية
By NATALIYA VASILYEVA, AP
MOSCOW (AP) — Stock markets rebounded Wednesday as renewed
optimism over the state of the U.S. economy and fresh Chinese policy
easing supported sentiment despite the failure of European finance
ministers to announce radical new measures to deal with the crippling
debt crisis afflicting the 17-nation eurozone.
Sentiment was
dampened in the early part of the European session by the failure of
eurozone ministers in Brussels on Tuesday to push forward radical plans
to help calm market jitters over a debt crisis that's already seen three
relatively-small countries get bailed out and is threatening much
bigger Spain and Italy.
A decision on how to forge a closer
fiscal union between the 17 eurozone countries will have to wait until
the leaders' summit next week.
The ministers did agree to hand
out euro8 billion ($10.7 billion) to Greece as part of its bailout to
stem an immediate cash crisis, but they kicked more difficult issues —
such as whether countries should cede some control over their finances
to a central European authority — to the leaders of the European Union
who meet next week.
Stocks have been relatively buoyant this week
on expectations that the 17 countries that use the euro will finally
come up with a plan to deal with their crushing debt crisis. Those hopes
remain generally.
Buoyant U.S. consumer confidence figures on
Tuesday also raised hopes that the world's largest economy is faring
better than expected. A raft of economic data over the rest of the week
will be closely eyed, not least Friday's nonfarm payrolls figures, which
often set the market tone for a week or two after their release.
"With
the longer term outlook for the U.S. economy becoming increasingly
bullish, expectations are for a robust set of numbers to be seen in the
days ahead," said Ben Critchley, sales trader at IG Index.
Sentiment
was also supported by the news that China reduced bank reserve levels
Wednesday to release money for lending and help shore up slowing growth.
Higher growth in China could be crucial for a global economy that's
suffering in the wake of the eurozone debt crisis.
Beijing
announced that thye amount of money China's commercial lenders must hold
in reserve will be cut by 0.5 percent of their deposits, effective Dec.
5, the central bank said. It was the first easing of monetary policy in
three years and analysts said was unlikely to be the last.
"This
is likely to be the first of a series of easing manoeuvres from China,
though they'll probably unfold over an extended period," said Benjamin
Reitzes, an analyst at BMO Capital Markets.
Beijing is gradually
easing controls imposed to cool an overheated economy and politically
dangerous inflation. Chinese leaders worry economic growth that eased to
9.1 percent in the quarter ending in September from 9.5 the previous
quarter might fall too abruptly, leading to job losses and possible
unrest.
Hopes over the number one and two economies in the world helped markets in Europe recoup early losses.
The
FTSE 100 index of leading British shares was up 0.8 percent at 5,379
while Germany's DAX rose 1.5 percent to 5,887. The CAC-40 in France was
0.9 percent higher at 3,052.
The euro meanwhile was down 0.1
percent at $1.3304, after figures showing inflation in the eurozone at a
stubbornly-high level of 3 percent — a full percentage point above the
European Central Bank's target — and a further uptick in the
unemployment rate to 10.3 percent.
Wall Street was also headed
for a higher opening on Wednesday following the previous session's
gains. Dow futures rose 0.6 percent to 11,630 and S&P 500 futures
were up an equivalent rate to 1,204.
Earlier, Asian stocks closed
lower on Wednesday. Japan's Nikkei 225 index dropped 0.5 percent to
close at 8,434.61. South Korea's Kospi dropped 0.5 percent to 1,847.51.
Hong Kong's Hang Seng dipped 1.5 percent to 17,989.35.
___
AP business writer Pamela Sampson from Bangkok and AP researcher Fu Ting from Shanghai contributed to this report.
MOSCOW (AP) — Stock markets rebounded Wednesday as renewed
optimism over the state of the U.S. economy and fresh Chinese policy
easing supported sentiment despite the failure of European finance
ministers to announce radical new measures to deal with the crippling
debt crisis afflicting the 17-nation eurozone.
Sentiment was
dampened in the early part of the European session by the failure of
eurozone ministers in Brussels on Tuesday to push forward radical plans
to help calm market jitters over a debt crisis that's already seen three
relatively-small countries get bailed out and is threatening much
bigger Spain and Italy.
A decision on how to forge a closer
fiscal union between the 17 eurozone countries will have to wait until
the leaders' summit next week.
The ministers did agree to hand
out euro8 billion ($10.7 billion) to Greece as part of its bailout to
stem an immediate cash crisis, but they kicked more difficult issues —
such as whether countries should cede some control over their finances
to a central European authority — to the leaders of the European Union
who meet next week.
Stocks have been relatively buoyant this week
on expectations that the 17 countries that use the euro will finally
come up with a plan to deal with their crushing debt crisis. Those hopes
remain generally.
Buoyant U.S. consumer confidence figures on
Tuesday also raised hopes that the world's largest economy is faring
better than expected. A raft of economic data over the rest of the week
will be closely eyed, not least Friday's nonfarm payrolls figures, which
often set the market tone for a week or two after their release.
"With
the longer term outlook for the U.S. economy becoming increasingly
bullish, expectations are for a robust set of numbers to be seen in the
days ahead," said Ben Critchley, sales trader at IG Index.
Sentiment
was also supported by the news that China reduced bank reserve levels
Wednesday to release money for lending and help shore up slowing growth.
Higher growth in China could be crucial for a global economy that's
suffering in the wake of the eurozone debt crisis.
Beijing
announced that thye amount of money China's commercial lenders must hold
in reserve will be cut by 0.5 percent of their deposits, effective Dec.
5, the central bank said. It was the first easing of monetary policy in
three years and analysts said was unlikely to be the last.
"This
is likely to be the first of a series of easing manoeuvres from China,
though they'll probably unfold over an extended period," said Benjamin
Reitzes, an analyst at BMO Capital Markets.
Beijing is gradually
easing controls imposed to cool an overheated economy and politically
dangerous inflation. Chinese leaders worry economic growth that eased to
9.1 percent in the quarter ending in September from 9.5 the previous
quarter might fall too abruptly, leading to job losses and possible
unrest.
Hopes over the number one and two economies in the world helped markets in Europe recoup early losses.
The
FTSE 100 index of leading British shares was up 0.8 percent at 5,379
while Germany's DAX rose 1.5 percent to 5,887. The CAC-40 in France was
0.9 percent higher at 3,052.
The euro meanwhile was down 0.1
percent at $1.3304, after figures showing inflation in the eurozone at a
stubbornly-high level of 3 percent — a full percentage point above the
European Central Bank's target — and a further uptick in the
unemployment rate to 10.3 percent.
Wall Street was also headed
for a higher opening on Wednesday following the previous session's
gains. Dow futures rose 0.6 percent to 11,630 and S&P 500 futures
were up an equivalent rate to 1,204.
Earlier, Asian stocks closed
lower on Wednesday. Japan's Nikkei 225 index dropped 0.5 percent to
close at 8,434.61. South Korea's Kospi dropped 0.5 percent to 1,847.51.
Hong Kong's Hang Seng dipped 1.5 percent to 17,989.35.
___
AP business writer Pamela Sampson from Bangkok and AP researcher Fu Ting from Shanghai contributed to this report.