Investing.com - U.S. stocks rallied on Thursday, as risk aversion eased amid signs of political progress in Italy and Greece and after upbeat U.S. jobless claims and trade balance data.
During early U.S. trade, the Dow Jones Industrial Average jumped 0.86%, the S&P 500 index surged 0.88%, while the Nasdaq Composite index climbed 0.35%.
Italy auctioned EUR5 billion of one-year Treasury bills at an average yield of 6.08%, the highest since September 1997, but still well below analyst expectations of 7%.
Following the auction, the yield on 10-year Italian bonds eased, after rising past the 7% threshold, a level widely considered unsustainable for continued borrowing.
Meanwhile, Greek leaders agreed that former European Central Bank Vice President Lucas Papademos will head the country's new national unity government.
In the U.S., data showed that jobless claims declined last week for the second straight week to the lowest level since April, while the trade deficit unexpectedly shrank in September to its narrowest level since December.
Cisco Systems surged 5.62% after the group forecast revenue and earnings above expectations, as demand from government and companies for its network equipment remained resilient despite global economic troubles.
Kohl's was also on the upside, with shares jumping 3.26% after the department store chain boosted its full-year profit forecast and said it expects strong sales during the holiday.
Elsewhere, U.S. lenders tracked their European counterparts higher, as shares in Goldman Sachas advanced 1.85% and Bank of America soared 1.46%, while JP Morgan and Citigroup jumped 1.32% and 1.18% respectively.
Energy stocks were also among the day's top gainers. Cabot Oil & Gas surged 5.15% and Exxon Mobil climbed 1.36%, while mining company 3M Co rose 1.57%.
Elsewhere, Olympus continued to tumble with shares diving 17.12% after the company said it will likely miss the November 14 deadline for the release of its first-half earnings and will instead aim to give the figures by December 14.
Other stocks in focus included Walt Disney Co and Nvidia Corp, due to post quarterly results later in the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.58%, France’s CAC 40 advanced 0.12%, Germany's DAX jumped 0.68%, while Britain's FTSE 100 posted a 0.03% decline.
During the Asian trading session, Hong Kong's Hang Seng Index plummeted 5%, while Japan’s Nikkei 225 Index tumbled 2.9%.
Also Thursday, in its monthly bulletin the European Central Bank halved its estimate for growth in the euro zone next year. The bank said it now expects the region’s gross domestic product to expand by just 0.8% in 2012, down from a previous forecast of 1.6%.
During early U.S. trade, the Dow Jones Industrial Average jumped 0.86%, the S&P 500 index surged 0.88%, while the Nasdaq Composite index climbed 0.35%.
Italy auctioned EUR5 billion of one-year Treasury bills at an average yield of 6.08%, the highest since September 1997, but still well below analyst expectations of 7%.
Following the auction, the yield on 10-year Italian bonds eased, after rising past the 7% threshold, a level widely considered unsustainable for continued borrowing.
Meanwhile, Greek leaders agreed that former European Central Bank Vice President Lucas Papademos will head the country's new national unity government.
In the U.S., data showed that jobless claims declined last week for the second straight week to the lowest level since April, while the trade deficit unexpectedly shrank in September to its narrowest level since December.
Cisco Systems surged 5.62% after the group forecast revenue and earnings above expectations, as demand from government and companies for its network equipment remained resilient despite global economic troubles.
Kohl's was also on the upside, with shares jumping 3.26% after the department store chain boosted its full-year profit forecast and said it expects strong sales during the holiday.
Elsewhere, U.S. lenders tracked their European counterparts higher, as shares in Goldman Sachas advanced 1.85% and Bank of America soared 1.46%, while JP Morgan and Citigroup jumped 1.32% and 1.18% respectively.
Energy stocks were also among the day's top gainers. Cabot Oil & Gas surged 5.15% and Exxon Mobil climbed 1.36%, while mining company 3M Co rose 1.57%.
Elsewhere, Olympus continued to tumble with shares diving 17.12% after the company said it will likely miss the November 14 deadline for the release of its first-half earnings and will instead aim to give the figures by December 14.
Other stocks in focus included Walt Disney Co and Nvidia Corp, due to post quarterly results later in the day.
Across the Atlantic, European stock markets were mixed. The EURO STOXX 50 rose 0.58%, France’s CAC 40 advanced 0.12%, Germany's DAX jumped 0.68%, while Britain's FTSE 100 posted a 0.03% decline.
During the Asian trading session, Hong Kong's Hang Seng Index plummeted 5%, while Japan’s Nikkei 225 Index tumbled 2.9%.
Also Thursday, in its monthly bulletin the European Central Bank halved its estimate for growth in the euro zone next year. The bank said it now expects the region’s gross domestic product to expand by just 0.8% in 2012, down from a previous forecast of 1.6%.