CW: Wall Street at 10-week high on strong corporate results
Wall Street closed at its highest level in 10 weeks on Monday, surging nearly 2% on another round of strong corporate results and upbeat economic news from China and Europe.
The Dow Jones industrial average closed up 208 points, or 2%, at 10,674, its highest level since mid-May. The Standard & Poor's 500 Index gained 24 points, or 2.2%, to 1,126. The Nasdaq Composite Index rose 41 points, or 1.8%, to 2,295.
The initial impetus came from economic figures in China that suggested that manufacturing there may have cooled enough to allow the government to ease off policies aimed at keeping the economy from overheating. Strong earnings reports in Europe from BNP Paribas and HSBC added to the upbeat tone. Meanwhile, a weaker US dollar lifted the energy and raw materials sectors.
Further boosting the stocks, the Institute for Supply Management said the US manufacturing sector rose at a faster rate than expected last month.
Banks and commodity stocks powered a sharp rise in European stocks, with the FTSE 100 in London gaining 139 points, or 2.7%. The DAX in Frankfurt rose 144 points, or 2.3%. The CAC 40 in Paris was 109 points, or 3%, higher.
In Asia, Hong Kong stocks surged to a three-month closing high on Monday, led by hopes for strong earnings at HSBC and on news that contract cell phone maker Foxconn International Holdings has resumed operations at a factory in India.
Hang Seng Index rose 1.82% or 383 points at 21,413, its highest closing level since April 26.
China's key stock index ended up 1.33%, as funds, private equity and insurance companies increased their holdings in anticipation of a further rally. The Shanghai Composite Index ended at 2,672.516 points.
Tokyo stocks also climbed as the market started responding to positive corporate earnings although the yen's appreciation and ongoing concerns about the health of the US economy prevented further gains. The 225-issue Nikkei Stock Average ended up 33 points, or 0.35%.
Today, the Japanese stock exchange climbed 1.7% following strong European bank results and better-than-expected US data which boosted optimism about economic recovery. The Nikkei rose 160 points to 9,730, while the broader Topix gained 1.4% to 862.
