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U.S. stocks edge higher amid Italy turmoil; Dow Jones up 0.45%

Published 11/07/2011, 09:59 AM
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Investing.com - U.S. stocks edged higher on Monday, as investors remained cautious amid ongoing uncertainty over Italy's current political turmoil ahead of a key parliamentary vote.

During early U.S. trade, the Dow Jones Industrial Average rose 0.45%, the S&P 500 index climbed 0.35%, while the Nasdaq Composite index advanced 0.29%.

Italian borrowing costs eased off earlier euro-era highs, on speculation that Prime Minister Berlusconi was about to step down amid mounting opposition from within his own party, ahead of a parliamentary vote on public finances on Tuesday.

The reports were subsequently denied by a spokesman for Mr. Berlusconi.

Meanwhile, Greek Prime Minister George Papandreou said German counterpart Angela Merkel expressed support for his decision to step down on Sunday, allowing the creation of a national unity government intended to secure international financing and avert a potential default.

The financial sector was broadly higher as U.S. lenders tracked gains posted by their European counterparts. Shares in Bank of America jumped 1.23% and Citigroup advanced 0.79%, while Goldman Sachs and JP Morgan saw shares rise 0.44% and 0.41%.

Energy stocks added to gains with oil and gas giants Exxon Mobil and Chevron climbing 0.75% and 1.32% respectively, while shares in mining company 3M rose 0.95%.

In company news, General Motors saw shares rise 0.93% as it seemed on track to double its annual tally to 5 million vehicles in China by 2015 despite slowing growth in the world's largest auto market.

Elsewhere, CME Group shares rose 0.22% and Intercontinental Exchange advanced 0.25% as they moved over the weekend to limit the fallout from the MF Global Holdings bankruptcy on futures markets by lowering margin requirements on some accounts.

On the downside, Best Buy fell 0.88% as it prepared to pay USD1.3 billion to buy its British partner Carphone Warehouse Group out of a fast-growing U.S. mobile phone venture, while abandoning plans for a chain of European megastores.

Across the Atlantic, European stock markets turned higher. The EURO STOXX 50 rose 0.22%, France’s CAC 40 climbed 0.16%, Germany's DAX advanced 0.42%, while Britain's FTSE 100 posted a 0.36% gain.

During the Asian trading session, Hong Kong's Hang Seng Index slumped 0.6%, while Japan’s Nikkei 225 Index dipped 0.31%.

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