Tuesday, March 2, 2010

Stocks, Dollar Gain as Spending, AIG Deal Bolster Confidence

Stocks and the dollar rose as growth in U.S. consumer spending, a possible European rescue of Greece and American International Group Inc.’s $35.5 billion sale of an Asian unit bolstered confidence in the economic recovery.

The Standard & Poor’s 500 Index gained 1 percent to 1,115.71 at 4:12 p.m. in New York, erasing its loss for 2010. Europe’s Stoxx 600 Index rallied 1.2 percent. The Dollar Index climbed 0.5 percent to 80.73, near its highest level since June. Copper rose to a seven-week high after the earthquake in Chile, the biggest producer of the metal, while the nation’s benchmark stock index tumbled. Greek equities and bonds rallied.

U.S. personal spending grew 0.5 percent in January for a fourth consecutive increase, while another report showed American manufacturing expanded for a seventh month. AIG’s sale of a life-insurance unit to Prudential Plc is its largest since the company received a government bailout in 2008. In a separate deal, Merck KGaA agreed to buy Millipore Corp. for $6 billion. (more)

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