CLOSING BELL: September 27th: DJIA: 13,485.97 | UP 72.46 | +0.54%
OIL: $91.85, UP 1.87, +2.08%
GOLD: $1,753.60, UNCHANGED 0.00, 0.00%
GASOLINE (US Avg): $3.795, DOWN 0.010
Reuters – Global stocks advanced and the euro recovered from two-week lows on Thursday after the Spanish government said it would cut spending sharply and opened the door for a potential European bailout.
Spain’s Deputy Prime Minister Soraya Saenz de Santamaria announced a timetable for economic reforms and a tough 2013 budget focused on spending cuts rather than tax increases as the country continues to negotiate a possible European aid package to ease high borrowing costs.
Officials said Spain was still analyzing the terms of the potential European Central Bank bond-buying program announced earlier this month and added that a decision on an aid request will be taken when the effect of the spending cuts is fully known.
“If there’s a solution where (Spain) can lower their yields, then there’s a possibility Spain will find a way to pull themselves out of this mess. Stocks are popping on this, and so is gold,” said Mike Matousek, senior trader at U.S. Global Investors in San Antonio.
The euro, which has lost more than 1.6 percent over the last two weeks, rose to $1.2912, up 0.3 percent, after hitting a low of $1.2830 earlier in the day.
Talk on Thursday that the China Securities Regulatory Commission would announce steps to support beleaguered domestic markets was also positive for relatively risky investments.
Read the full story at Reuters [here]
The Common Good publishes a financial market wrap-up every weekday after markets close, available here.