News Column

Markets Perk up Friday Morning

Sept. 21, 2012
Morning stock reports

U.S. stock indexes climbed early in New York Friday as reports suggest Spain is preparing to ask the international community in Europe for a bailout.

The Wall Street Journal reported Friday that Spain and the European Commission are working out details for how the country would be in compliance with terms for a loan from the European Stability Mechanism.

Spain has yet to ask for help and has been holding back on making a formal request in part because the terms of a loan could require harsh budget adjustments.

With Spanish banks holding large numbers of toxic mortgages, however, investors reacted favorably to news that Spain could be preparing to make a request for aid.

In midmorning trading in New York, the Dow Jones industrial average added 38.72 points, or 0.29 percent, to 13,636.65. The tech-dominated Nasdaq Composite index gained 16.63 points, or 0.52 percent, to 3,192.59. The Standard and Poor's 500 gained 5.59 points, or 0.38 percent, to 1,465.85.

The benchmark 10-year treasury fell 5/32 to yield 1.783 percent.

The euro rose to $1.2994 from Thursday's $1.2968. The U.S. dollar fell to 78.18 yen from 78.25 yen.

In Tokyo, the Nikkei 225 index added 0.25 percent, 23.02 points, to 9,110.

Source: Copyright United Press International 2012

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