US stocks rise as euro sees gains
- 15 June 2010
- From the section Business
US stocks overcame some mixed economic data to close more than 2% higher after a gain in the euro signalled growing confidence with Europe's ability to deal with its debt crisis.
The euro rose 0.9% against the dollar and was trading at $1.2332.
The Dow Jones closed 213.88 points higher at 10,404.77, while the S&P 500 climbed 25.6 points to 1,115.23.
A report showing that manufacturing in June grew in New York state also offset downbeat data on homebuilder sentiment.
The manufacturing report from the New York Federal Reserve showed an increase in output from the region even as the number of workers in the sector fell.
Another report from the National Association of Home Builders showed that sentiment fell in June by the sharpest amount since the height of the financial crisis as the homebuyer tax credit expired.
"The manufacturing recovery remains fairly strong. It supports the view that the fiscal crisis in Europe has not impacted on the US economy for now," said Paul Dales from Capital Economics.
The euro, which is seen as measure of investors' confidence in Europe's economy, has steadily risen over the past few days since falling to a four-year low of $1.1878 last week.
Earlier, stock markets in Europe had also finished higher.