Stocks on Wall Street rose in response to an improvement in US manufacturing employment and increased merger activity.The Dow Jones Industrial Average closed 78.53 points, or 0.8%, up at 10,403.79. The index is now just 25 points short of its 2009 close.A
Stocks on Wall Street rose in response to an improvement in US manufacturing employment and increased merger activity.
The Dow Jones Industrial Average closed 78.53 points, or 0.8%, up at 10,403.79. The index is now just 25 points short of its 2009 close.
A crop of largely positive US economic data helped boost Caterpillar, which gained 1.9% to lead the Dow.
Pharmaceutical company Pfizer gained 1.6%, amid mergers between other drug-makers. But the Dow's financial components slumped as investors fretted about a sharply declining pound and the strength of UK banks.
JP Morgan Chase fell 0.9%, while American Express shed 0.6%.
The Nasdaq Composite gained 1.6% to 2273.57, as technology stocks soared, led by SanDisk. The company, which makes flash data storage products, rose 8.7% after boosting its first-quarter guidance to reflect more demand for memory chips.
The S&P 500 index gained 1.0% to 1115.71, with all sectors in the black aside from financials, which dipped in and out of negative territory. Utilities and technology stocks led the climb.
Other markets
European stocks rose, supported by a surge in mergers and acquisitions.
Prudential’s shares dropped 12% after it announced plans to acquire American International Group's AIA business in Asia for $US35.5 billion, most of that in cash. The deal requires Prudential to launch one of the biggest rights issues in UK corporate history.
Germany's Merck rose 2.9% after announcing the takeover of US-based drug company Millipore in a deal valued at €5.3 billion.
The Stoxx Europe 600 Index rose 1.1% to 248.6. The U.K.'s FTSE 100 Index increased 1% to 5405.9 Germany's DAX gained 2.1% to 5713.5 and Paris's CAC-40 ended 1.6% higher at 3769.5.
Asian markets rose as resource stocks advanced after a massive earthquake in Chile raised fears of disruption in copper supplies.
Hong Kong's Hang Seng Index advanced 2.2% to 21,056.93, China's Shanghai Composite added 1.2% to 2311.07, Australia's S&P/ASX 200 climbed 1.1% 4686,53, Japan's Nikkei Stock Average of 225 companies added 0.5% 10,172.06 and Taiwan's Taiex rose 1.9% 7577.75.
Markets in South Korea, India and Thailand were closed for public holidays.
Commodities: Oil up, gold down
Oil prices rose then fell in the aftermath of the Chilean earthquake, which disrupted copper production and may give a boost to commodity prices in general.
Light, sweet crude for April delivery in New York fell 96USc, or 1.2%, to settle at $US78.70 as the $US80 level proved to difficult to sustain. Prices have stayed below $US80.62 a barrel, which was the highest level since January 12.
Gold futures were steady initially, attracting spillover buying as copper surged, but later fell back when copper gave up much of its gain and the US dollar strengthened.
Most-active April gold settled 60USc an ounce lower at $US1118.30.
Currencies: Pound down, dollar up
The UK pound sank against the dollar Monday as the country's shaky fiscal position and uncertain political picture led investors to sell off sterling more than 2.25% on the day.
The euro also fell against the dollar, dropping below the key $US1.35 level. Investors wary of Greece's swollen debt questioned whether reports of a possible aid plan would pull that country – and the rest of the teetering euro-zone periphery – from the fiscal doldrums.
A rise in US manufacturing job numbers also boosted the greenback.
The UK pound was at $US1.4887 from $US1.5249. The euro was at $US1.3468 from $US1.3617 late on Friday.
The dollar was at ¥89.25 from ¥88.84, while the euro was at ¥120.22 from ¥120.98.
