>York – Hope tertanganinya crisis by European leaders pushing back the shares on Wall Street into positive territory. The Dow Jones and S & P rose, but the Nasdaq fell.
Optimism increase after the Financial Times reported European leaders will discuss a mechanism to raise funds in meeting mendatnag rescue. The report quoted a senior European official.
At the meeting which took place Thursday and Friday next, France and Germany are expected to drive change EU rules so that it can give a penalty to states that exceed deficit targets which in turn could give the market confidence.
“People are expecting something big and bold can be asked so that people berpendapatn something good will come out of this,” said Stephen Massocca, managing director at Wedbush Morgan, as quoted by Reuters on Wednesday (12/07/2011).
In trading Tuesday (7/12/2011), the Dow Jones industrial average closed up 52.30 points (0.43%) to as low as 12150.13. The broader Standard & Poor’s 500 rose 1.39 points (0.11%) to a level of 1258.47, the Nasdaq fell 6.20 points (0.23%) to a level of 2649.56.
Optimism towards Europe also indicated by a sharp decline in yields on bonds from Italy and Spain. Yields on debt securities before the two countries jumped sharply so that the crisis sparked fears that Europe will widen.
“What do you see Adala in trade debt. So if the news had no impact on European sovereign debt, if it is not affected by the news, then it will not impact on the stock market,” added Massocca.
Shares of AMR Corp., parent of American Airlines jumped 67% to 70 cents after appointing Beverly Goulet, as chief restructuring officer to handle the bankruptcy.
But walk a thin trading, with transactions on the New York Stock Exchange only amounted to 6.2 billion shares, below the daily average which only amounted to 7.95 billion shares
