U.S. stocks up on China yuan move; Dow Jones rises 1.13%
Investing.com
Published Jun 21, 2010 10:54AM ET
During early U.S. trade, the Dow Jones Industrial Average was up 1.13%; the S&P 500 index rose 1.04% and the Nasdaq Composite index was up 1.05%.
Energy and raw-materials producers rallied as crude oil rose above USD 78 a barrel and metal values climbed amid speculation of increasing demand from China.
On Saturday, the People’s Bank of China announced that it would allow the yuan to float in a 0.5% daily trading band against the U.S dollar. The move signaled the bank’s increased optimism with regard to China’s economic growth and the global economic recovery.
In a statement announcing the move the bank said that the global economy is: “gradually recovering and the upturn in the Chinese economy has become more solid.”
Across the Atlantic, European stock markets were also up: France’s CAC 40 was up 1.46%; Germany's DAX rose 1.24%; Britain's FTSE 100 was up 0.99%; and the EURO STOXX 50 rose 1.39%.
Later in the day, the president of the European Central Bank, Jean-Claude Trichet was due to testify before the European Parliament in Brussels. Traders were likely scrutinizing his comments for clues to future shifts in monetary policy.
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Written By: Investing.com
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