Stocks rebound on energy sector, euro gains

Fri Mar 23, 2012 5:32pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

By Herbert Lash

(Reuters) - The euro rose and world stocks rebounded on Friday, lifted by shares in energy and basic materials, as concerns about global growth were set aside by investors who saw further gains in this year's rally.

Commodity prices ticked higher on the belief a sell-off on Thursday, triggered by slower-than-expected manufacturing data from China and the euro zone, was overdone.

Copper rebounded from a two-week low the previous session, helped by a weaker dollar, falling inventories and an outlook for above-historical consumption levels from Chile's Codelco, the world's top producer.

European shares trimmed losses and Wall Street rose on rebounding energy and material shares. Rising crude oil prices helped the energy sector.

The Dow Jones industrial average .DJI closed up 34.59 points, or 0.27 percent, at 13,080.73. The Standard & Poor's 500 Index .SPX rose 4.33 points, or 0.31 percent, at 1,397.11. The Nasdaq Composite Index .IXIC added 4.60 points, or 0.15 percent, at 3,067.92.

Some investors are looking for a boost next week from quarter-end "window-dressing," when fund managers drop poor-performing stocks and chase better-performing ones to spruce up their holdings when they are published.

"Overall, people feel good about stocks, so people want to jump in and buy on dips like we saw yesterday," said Michael Matousek, senior trader at U.S. Global Investors Inc, which manages about $3 billion in San Antonio, Texas. "They're afraid of missing the boat so they focus on things that have lagged."

An S&P index of energy shares .GSPE rose 1.0 percent while the S&P materials index .GSPM also added 1.0 percent. Caterpillar Inc. (CAT.N: Quote) rose 1.3 percent to $107.83, providing the biggest lift to the Dow.   Continued...

Labourers work on a railway construction project in front of a residential complex in Shenyang, Liaoning province in this March 5, 2012 file photo. REUTERS/Stringer/Files