Wall Street notches up solid gains

Copenhagen News.Net
Thursday 28th August, 2008

Data showing the U.S. economy was bouncing back helped lift stocks on Wall Street Thursday.

Solid buying saw all the major indices leap into the black.

Second quarter GDP growth hit 3.3% in the second quarter, well above expectations of 1.9%.

At the close of trading the Dow Jones Industrials responded by rising 212.67 points or 1.85% to 11,715.18.

The Nasdaq Composite was up 29.18 points or 1.23% at 2,411.64.

The Standard and Poor's 500 added 19.02 points or 1.48% to 1,300.68.

Oil prices fell by as much as $3 a barrel Thursday adding to the positive sentiment.

A boost to the dollar came with the news that exports rose in the second quarter by a hefty 13.2%. Imports declined by 7.6%. While part of the movements could be explained by exchange rate movements, the healthier balance of trade underpinned the GDP data, and demonstrated the effect of the recent strengthening of the dollar.

As a result the U.S. currency was stronger again Thursday. Around the close in New York the dollar was quoted at 1.4690 against the euro.

Its biggest move however was against the British pound which fell to a two-year low. At last call it was fetching 1.8286.

The Japanese yen weakened to 109.58, while the Australian dollar fell to .8605, and the Swiss franc to 1.1000.

The Canadian dollar was off a touch at 1.0522.

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