Markets Jump in U.S. and Europe on Hopeful Signs

Stocks rose on Tuesday in Europe and on Wall Street as a drop in Spain’s borrowing costs and unexpectedly positive data from Germany eased euro zone debt worries.

Short-term financing costs for struggling Spain more than halved as banks lapped up debt at an auction, with much of the purchasing power said to have come from cut-rate loans from the European Central Bank.

On the economic front, data showed United States housing starts surged in November and permits for future construction were the highest since March 2010 as demand for rental apartments rose.

In early trading on Wall Street, the Dow Jones industrial average was up 232.31 points, or 2 percent, to 11,998.57. The Standard & Poor’s 500-stock index was up 2.1 percent and the Nasdaq composite index rose 2.2 percent.

Headlines and fluctuating bond prices out of the euro zone continued to cause high volatility. The market will be prone to large swings this week on expected low volume due to the upcoming Christmas holiday.

 Read full article here

source article: nytimes.com
source images: nytimes.com