Wall Street Rises on European News

New York, Oct 27 (IANS): Wall Street rose Wednesday as news from Europe showed more positive signs about a resolution for sovereign debt crisis at the European leaders' summit in Brussels, Xinhua reported.

According to sources, the euro zone was talking about expanding the EFSF (European Financial Stability Facility) bailout fund to one trillion euros.

Encouragingly, German lawmakers voted 503 to 89 with four abstentions in favour of leveraging the European bailout fund to make it more effective, adding to the chance for EU leaders to seal a deal during the meeting.

And there was report saying that China has agreed to invest in Europe's bailout fund, citing two senior EU diplomats. The Dow jumped over 100 points after the news came out this afternoon as investors took it as a great support for European struggling debt- stressed countries.

However, the haircut on Greece's debt would be the main stumbling block for a final resolution.

Also adding to the gains, demand for long-lasting manufactured goods recorded their largest gain in six months in September, suggesting the US economy was gaining some momentum.

According to the US Commerce Department, durable goods orders excluding transportation component rose 1.7 percent after falling by a revised 0.4 percent in Aug., much bigger than the 0.4 percent rise anticipated by the market.

Among earnings, Boeing and Ford Motors reported better-than- expected quarterly results, lifting market sentiment.

The Dow Jones industrial average gained 162.42 points, or 1.39 percent, to 11,869.04. The Standard & Poor's 500 rose 12.95 points, or 1.05 percent, to 1,242.00. The Nasdaq Composite Index added 12. 25 points, or 0.46 percent, to 2,650.67.


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