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U.S. stock market soars after China eases euro fears

U.S. stock market soars after China eases euro fears

U.S. stocks roared back Thursday from recent steep falls after China brushed aside a report that it was reviewing its eurozone investments.
The Dow Jones Industrial Average rallied 284.54 points (2.85 percent) to finish at 10,258.99. The blue-chip index had closed below the 10,000 threshold Wednesday for the first time in three months amid concerns about the European financial crisis.
The tech-rich Nasdaq index leaped 81.80 points (3.73 percent) to 2,277.68 while the S&P 500, a broader measure of the market, advanced 35.11 points (3.29 percent) to 1,103.06.
"Easing concerns about the euro from China's denial that it is reconsidering its euro foreign exchange reserves are helping the bulls rid the bad taste in their mouths from yesterday's late-day slide in the US equity markets," Charles Schwab & Co. analysts said in a client note.
Market sentiment gained a boost from China's reassurances that it was not considering cutting its holdings of eurozone debt amid the mounting budget crisis in the 16-nation bloc.
China, the world's largest holder of foreign-exchange reserves, called the report in the Financial Times that it was mulling such a move "baseless."
"China's refuting has ignited a relief rally of sorts," said analyst Patrick O'Hare of Briefing.com. "Frankly, we are surprised the market is so taken with China's reassurance."
"The market, though, sees what it wants to see, and it is desperate to see good news now, so much so that it can spin something that is old into something that sounds new and invigorating," O'Hare said.
The Chinese denial overshadowed a pair of disappointing U.S. economic data: a surprise downward government revision of first-quarter U.S. economic growth, to 3.0 percent, and a smaller-than-expected decline in weekly initial jobless benefits claims.


Updated : 2021-05-16 10:18 GMT+08:00