U.S. stocks advanced, following yesterday’s decline in the benchmark Standard & Poor’s 500 Index, after China said it will get more involved in a solution for Europe’s sovereign debt crisis.
By Rita Nazareth – Wed Feb 15, 2012 9:31 AM Bloomberg
The S&P 500 added 0.2 percent to 1,353.23 at 9:31 a.m. New York time.
“The key feature is a much more hopeful prospect for the euro zone and a deal in the making for Greece,” said Mike Lenhoff, chief strategist at Brewin Dolphin Securities Ltd. in London. “That’s why the S&P 500 is a smidgen away from a high of nine months ago. And to some extent, it’s cheered on by the position China’s taken.”
Global equities rallied as China pledged to invest in Europe’s bailout funds and sustain its holdings of euro assets. Stock futures pared gains amid concern that officials in Europe and Greece were moving further apart as they try to negotiate a bailout to help the nation avoid default.
In the U.S., output at factories rose 0.7 percent in January after a revised 1.5 percent gain in December that was the largest in five years, figures from the Federal Reserve showed today in Washington. A 2.5 percent decline in utility output caused total industrial production to be little changed, less than forecast. Manufacturing in the New York region expanded in February at the fastest pace since June 2010, according to a separate report.
The S&P 500 yesterday closed about 1 percent away from its peak nine months ago of 1,363.61, which was the highest level since June 2008. The index has risen 7.4 percent this year as the U.S. economy showed signs of accelerating and European leaders moved closer to a solution on the region’s debt crisis.
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