Wall Street advances as French banks rebound

Dow Jones:11,105.85 (+44.73) Nasdaq:2,532.15 (+37.06) S&P 500:1,172.87 (+10.60)

US STOCKS rose yesterday, as Europe’s benchmark equity index rebounded from a two-year low and Treasuries fell as French banks dismissed concerns over their access to funds and investors watched for signs of progress in efforts to tame the euro region’s debt crisis.

The Standard and Poor’s 500 Index rose 1 per cent in New York.

Société Générale, which had plunged 8.1 per cent, rallied 15 per cent and BNP Paribas added 7.2 per cent following a 12 per cent retreat after the French banks said they are able to finance their operations.

The Dow Jones industrial average gained 44.73 points, or 0.40 per cent, to 11,105.85.

The Standard & Poor’s 500 Index rose 10.60 points, or 0.91 per cent, to 1,172.87.

The Nasdaq Composite Index climbed 37.06 points, or 1.49 per cent, to 2,532.15.

Yields on 10-year Treasuries climbed four basis points to 1.99 per cent. Crude oil futures increased 2.3 per cent to $90.21 a barrel.

German chancellor Angela Merkel said she is “very optimistic” that Finland’s demands for special collateral as part of the Greek bailout package will be met.

Greek prime minister George Papandreou will hold a conference call with Merkel and French president Nicolas Sarkozy today to discuss developments in Greece and the euro area.

“It’s all about Europe,” Tom Wirth senior investment officer for Chemung Canal Trust, in Elmira, New York, said.

“Maybe the possibility of European authorities saying something could bring more certainty. We know there are opportunities out there,” he said.

The S&P 500 briefly pared gains after Rheinische Zeitung reported that German finance minister Wolfgang Schaeuble said Greece would not get more aid.

Delta Air Lines jumped 8.1 per cent, United Continental rose 6.8 per cent and Kansas City Southern added 5.6 per cent.

Treasuries extended their losses as the government sold $21 billion in 10-year notes at a record low yield and concern eased that Europe’s debt crisis may cripple the region’s financial institutions.

Silver futures added 2.4 per cent while natural gas climbed 2.5 per cent and gold increased 1.5 per cent. – (Bloomberg)