US stocks turn into positive territory
November 12th, 2011 - 9:58 am ICT by IANSNew York, Nov 12 (IANS) US stocks turn positive Friday amid signs of stabilization in European debt and better-than- expected data, with all three major indexes turning positive, Xinhua reported.
Italy’s Senate approved a budget bill Friday, which cleared the way for Prime Minister Silvio Berlusconi to resign. The bill was also expected to pass the lower chamber of the parliament Saturday.
The news helped boost investors’ confidence in the country while the yield on the 10-year Italian government bond dropped to 6.45 percent. The yield reached 7.25 percent Wednesday, the highest since 1997.
Meanwhile, investors kept a close watch on the fourth round of banking stress test. The Federal Reserve will conduct the stress tests in the coming weeks on large US banks, aiming to find out whether the banks can withstand a recession.
Fed Vice Chairman Janet Yellen said the tests were necessary as the US economy and financial markets had downside risks, due to the ongoing European debt crisis.
The Dow Jones industrial average gained 259.89 points, or 2.19 percent, to 12,153.68. The Standard & Poor’s 500 was up 24.16 points, or 1.95 percent, to 1,263.85. The Nasdaq Composite Index advanced 53.60 points, or 2.04 percent, to 2,678.75.
As for dollars, the US dollar fell against major currencies in late New York trading Friday as Italy passed austerity plan and US consumer sentiment in November rallied.
Meanwhile, in the oil market, crude prices rose Friday as Italy’s senate approved the economic reform plan, easing concerns about European debt crisis contagion. For the week, crude registered the third consecutive weekly gains.
Light, sweet crude for December delivery gained $1.21, or 1.24 percent to settle at $98.99 a barrel on the New York Mercantile Exchange. For this week, it rose $4.73, or 5.02 percent.
In London, Brent crude for December delivery climbed 45 cents, or 0.40 percent to close at $114.16 a barrel. For this week, it ended $2.19 higher, or 1.96 percent. It was also its third straight weekly gain.
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