In the U.S.: U.S. Stocks Rise As Draghi Announces Details Of Bond Plan

6 September 2012

Jobless claims at 1-month low, ECB’s agreement to “fully effective backstop”…risk on it is!

U.S. stocks rose, sending the Standard & Poor’s 500 Index higher for the first time in three days, as the European Central Bank announced specifics of its bond-buying plan and data boosted optimism in the labor market.

The S&P 500 added 0.6 percent to 1,412.02 at 9:31 a.m. in New York.

ECB President Mario Draghi said policy makers agreed to an unlimited bond-purchase program as they try to regain control of interest rates in the euro area. He said the ECB will have a “fully effective backstop to avoid destructive scenarios with potentially severe challenges for price stability.”

U.S. jobless claims declined last week and companies added more workers than forecast in August, reports showed today before monthly payrolls data tomorrow.

The S&P 500 rose for a third month in August as Federal Reserve Chairman Ben S. Bernanke pledged to deploy measures to improve the economy and the euro area’s leaders said they would resolve their region’s debt crisis.


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