By Agency Reporter   Thursday, 9 Sep 2010

 

United States share prices rebounded on Wednesday, aided by gains in European markets, while the stronger yen tested the Bank of Japan‘s resolve to cut the currency down from its 15-year peak.

 

The force of safe-haven flows into the stable Japanese currency has pushed it to the best levels against the US dollar since 1995, but the consequences have meant Japanese exporters suffer, taking the benchmark Nikkei stock index down two per cent on Wednesday, off 14.43 per cent for the year.

 

According to Reuters, Shares in BP were among European gainers, after it issued a report shifting much of the blame for the Gulf of Mexico oil spill at the worst in US history, onto its contractors Transocean and Halliburton.

 

Financial shares rebounded after a successful auction of Portuguese debt eased concerns about European banks and sovereign debt felt on Tuesday.

 

US stock markets, after suffering a sharp fall on Tuesday, as investors returned from a long holiday at the weekend, tracked Europe‘s turnaround. Still, investors held their enthusiasm in check ahead of a Federal Reserve report on the state of the economy due at 2pm.

 

”The sectors that were hit in the sell-off on Wednesday are bouncing back,” said David Chalupnik, head of equities at FAF Advisors in Minneapolis. ”And the lower dollar does help the material and energy stocks.”

 

In mid-morning New York trade, the Dow Jones industrial average rose 71.14 points, or 0.69 per cent, at 10,411.83. The Standard & Poor‘s 500 Index gained 8.64 points, or 0.79 per cent, at 1,100.48. The Nasdaq Composite Index climbed 20.69 points, or 0.94 percent, at 2,229.58.

 

The pan-European FTSEurofirst 300 index gained 0.95 per cent. Shares of BP were up 1.59 per cent. Transocean slammed the report and Halliburton officials were not immediately available for comment.

 

Source: The Punch