Dow claws back 10,000 on improving economic outlook

A broad rally, the biggest one-day rise since May 27, lifted the Dow well  back above 10,000 after upbeat economic comments from the European Central Bank, lower US jobless claim and higher exports out of China.

The Dow Jones Industrial Average closed 273.35 points, or 2.8%, higher at 10,172.60. The measure had hovered above that level for much of Wednesday's session, but it failed to close above it.

Caterpillar led the Dow's gains with a jump of 5.5%, as investors fretted less about how the industrial giant's overseas revenue could be affected by the slumping euro.

The Nasdaq Composite Index was up 2.8% to 2218.71, while the S&P 500 closed 3.0% higher at 1086.84, led by a 4.9% gain in its energy sector, which benefited from rising oil prices.

US-listed shares of BP rebounded, erasing some of the previous day's sharp losses as fears eased about the UK oil giant's ability to withstand the expense of the Gulf of Mexico oil-spill recovery.
 
American depositary shares of BP dropped to a 14-year low on Wednesday afternoon while shares listed in London closed down 6.7% at 365p after hitting a 13-year low on Thursday morning.

Other markets: Europe, Asia up

European stocks ended sharply higher, lifted by strong Chinese export data, a successful Spanish bond auction and some reassuring words from European Central Bank president Jean-Claude Trichet.

Later in the session, a surge in Wall Street stocks also helped to underpin European gains.

Basic-resource stocks were among the best performers after confirmation China's exports grew significantly more than anticipated in May, reassuring investors that the global economy is on track.

Exports rose 48.5% in May from a year earlier, versus expectations for a 30.2% increase.

Suggestions Australian Prime Minister Kevin Rudd will amend the proposed 40% mining profits tax lifted mining stocks, with Eurasian Natural Resources rising 4.5% and Xstrata adding 4.3% in London, while ArcelorMittal gained 1.7% in Paris.

The Stoxx Europe 600 index rose 1.6% to 248.46. The UK's FTSE 100 index rose 0.9% to 5132.50, France's CAC-40 index ended up 2% at 3516.64 and Germany's DAX added 1.2% to 6056.59.

Asian markets ended mostly higher on upbeat economic data from China, Japan and Australia.

Japan's Nikkei Stock Average rose 1.1% to 9542 and Australia's S&P/ASX 200 also gained 1.1% to 4435.31.

Korea's Kospi rose 0.3% to 1651.70, Hong Kong's Hang Seng Index inched up 0.1% to 19,632.70, Taiwan's Taiex jumped 1.6% to 7181.77 and China's Shanghai Composite fell 0.8% to 2562.58.

Commodities: Oil up, gold down

Crude prices topped $US76 a barrel as signs of improving demand overshadowed high global oil inventories.

Light, sweet crude for July delivery in New York moved as high as $US76.30 a barrel, before settling at $US75.48, up 1.5%. Oil has gained 5.7% in a three-day streak.

North Sea Brent crude on the ICE for July delivery was $US1.19 higher, at $US75.46 a barrel. Crude in New York hasn't settled above $75 a barrel since May 12.

Gold futures weakened amid increased optimism about the global economic recovery.

Comments from Chinese regulators that the gold market isn't an attractive place for the nation to diversify its foreign exchange holdings also have hurt prices.

Most actively traded gold, for August delivery, was down $US5.80, or 0.5%, at $US1224.10 an ounce in New York.

Currencies: Euro, pound up

The euro advanced sharply against the dollar as positive economic data lent credence to the idea of a global recovery and the European Central Bank offered no surprises after standing pat on key rates.

A German court's rejection of a challenge to Germany's contribution to the $US1 trillion euro rescue plan.

The euro traded at $US1.2105, compared with $US1.1987 late on Wednesday. The dollar was at ¥91.04 from ¥91.16.

The euro strengthened to ¥110.18 from ¥109.28. The UK pound strengthened to $US1.4665 from $US1.4533.