Stocks rose for a fourth session on Thursday following encouraging comments by European Central Bank President Mario Draghi on tools to tackle the region’s debt crisis and in support of the euro.
European shares rose to go back into positive territory during a volatile session on Thursday, with traders expecting key indexes to stay within tight rages while uncertainty persists over the Euro zone’s debt crisis.
The FTSEurofirst 300 index was up 0.1 per cent at 1,102.07 points by 1035 GMT, while the Euro zone Euro STOXX 50 index rose 0.2 per cent to 2,496.47 points. Both indexes had dipped in and out of positive territory, with the FTSEurofirst 300 trading between an intraday low of 1,096.85 points and a high
The euro rose 0.4 per cent to $1.29 after the decision was announced, earlier touching a two-week high against the Japanese yen, British pound and Swiss franc.
Financial shares led the market higher after Draghi said the ECB was ready to buy the bonds of Euro zone member countries that ask for it, leaving the door open to a widely expected bailout of Spain.
"Draghi has not disappointed the markets on Thursday," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"The dollar is weak and we see risk coming back into the market," said Cardillo, referring to Draghi’s comment that the euro is "irreversible" in an affirmation of his commitment to the currency and the region’s monetary system.
The Dow Jones industrial average gained 96.13 points, or 0.71 per cent, to 13,590.74. The S&P 500 rose 11.44 points, or 0.79 per cent, to 1,462.43. The Nasdaq Composite added 13.01 points, or 0.42 per cent, to 3,148.24. The weaker dollar helped lift prices of crude oil and basic metals, boosting shares in the energy and materials sectors.
The Federal Reserve releases minutes from the September 12-13 meeting of its policy-setting Federal Open Market Committee at 2:00 pm EDT.
Data showed September sales looked solid as shoppers wrapped up back-to-school buying and put the brakes on more big spending before the holiday season.
Costco Wholesale shares rose 1.6 per cent to $101.25 after it reported a better-than-expected 6 per cent rise in September sales at stores open at least a year.
