Wall Street snapped back today as Spain’s new budget eased European tensions and the Chinese pumped more money into their economy.
The S&P Retail Index rose 0.9 percent, or 6.09 points, to 657.16, as the Dow Jones Industrial Average rose 0.5 percent, or 72.46 points, to 13,485.97.
The gainers included Zale Corp., up 9 percent to $6.81; Gildan Activewear Inc., 3.5 percent to $31.85; Rue21 Inc., 3.3 percent to $31.41; Warnaco Group Inc., 2.8 percent to $52.03, and Sears Holdings Corp., 2.8 percent to $56.36.
Most major European markets logged gains as Spain unveiled its latest austerity budget, which emphasized spending cuts rather than tax hikes.
The 2013 Spanish budget included protection for pensions and fewer tax hikes than at least some expected. The country’s deputy prime minister Soraya Saenz de Santamaria called it “a crisis budget designed to exit the crisis.”
Demonstrators clashed with police in two days of violent protests in the streets of Madrid this week in anticipation of the new fiscal roadmap.
Paris’ CAC 40 rose 0.7 percent to 3,439.32, followed by Milan’s FTSE MIB, which gained 0.3 percent to 15,450.14. The FTSE 100 in London and the DAX in Frankfurt were both up 0.2 percent, to 5,779.42 and to 7,290.02, respectively.
Madrid’s IBEX 35, however, fell 0.2 percent to 7,842.30.
The region’s retail and luxury stocks were mixed. The gainers included Safilo Group, up 1.6 percent to 6.05 euros; Yoox, 1.5 percent to 10.11 euros, and Beiersdorf, 1.4 percent to 57.46 euros.
Among the decliners, Hennes & Mauritz stood out with a 5.8 percent drop to 232.20 Swedish kronor. The cheap-chic retailer posted a lower-than-expected rise in third-quarter profits for the three months to August 31.
Mulberry Group was down 2.8 percent to 11.51 pounds, while Inditex also retreated 2.8 percent to 96.14 euros.
The euro traded at $1.29 against the dollar while the pound traded at $1.62.
Asian markets gained ground after China’s central bank injected an additional 365 billion yuan, or $57.56 billion, into its economy this week, according to reports.
Shanghai’s SSE Composite Index increased 2.6 percent to 2,056.23 and Hong Kong’s Hang Seng Index rose 1.1 percent to 20,762.29.