U.S. markets take off on EU summit
NEW YORK, June 29 (UPI) -- U.S. markets were higher Friday following strong gains in Europe prompted by key policy decisions made at a European Union summit in Brussels.
With many details left for a later date, heads of state in the economically-troubled region agreed to form a strong, centralized banking regulator and give countries permission in the future to request bailout funds for their banks rather than for their governments, a step meant to avoid adding to sovereign debt burdens.
In Washington, the Commerce Department said consumer spending was flat in May for the first time since November 2011. Incomes rose marginally in the month.
In early afternoon trading on Wall Street, the Dow Jones industrial average added 225.61 points, 1.79 percent, to 12,827.87. The Standard & Poor's 500 index added 26.84 points, 2.02 percent, to 1,355.88. The Nasdaq composite index gained 73.46 points, 2.58 percent, to 2,922.95.
The 10-year benchmark treasury note fell 20/32 to yield 1.654 percent.
The euro rose to $1.2665 from Thursday's $1.2444. Against the yen, the dollar rose to 79.85 yen from 79.46 yen.
In Tokyo, the Nikkei 225 index climbed 1.5 percent, 132.67, to 9,006.78.
Consumer spending falls flat in May
WASHINGTON, June 29 (UPI) -- Consumer spending was flat in May for the first time since November 2011, the U.S. Commerce Department said Friday.
Spending was unchanged following a 0.1 percent rise in March and April and a 1 percent rise in February.
Incomes rose, but showed a decline in growth. Incomes in May rose 0.2 percent, matching the growth rate in April, which was half the income growth rate of February and March.
The figures indicate that hiring has stalled. In turn, consumer spending, which makes up about 70 percent of the gross domestic product, came in unchanged.
Resources boost Canada's April GDP
OTTAWA, June 29 (UPI) -- Canadian mining and oil-gas industries nudged national gross domestic product values up 0.3 percent in April, Statistics Canada reported Friday.
Mining grew 3.1 percent in April, with increased output at copper, nickel, lead and zinc mines as well as potash mines, the report said.
Oil and gas extraction advanced 2.4 percent in April.
"Transportation services as well as the agriculture, forestry, fishing and hunting sector increased," StatsCan said.
Wholesale trade was up 1.2 percent in April, a fifth consecutive monthly increase, although retail trade was down by 0.8 percent.
Manufacturing declined 0.3 percent in April while transportation and warehousing services rose 0.7 percent, as "trucking and rail transportation benefited from the strength in mining and wholesale trade," the agency said.
Crude oil jumps 6.5 percent
NEW YORK, June 29 (UPI) -- Crude oil prices rose close to $83 per barrel Friday as heads of state in Europe reached several breakthrough agreements to support the euro.
West Texas Intermediate crude oil gained $5.03 on the Comex division of the New York Mercantile Exchange, a 6.5 percent jump to $82.71 per barrel.
Home heating oil added 11.29 cents to reach $2.6601 per gallon.
Reformulated blendstock gasoline gained 10.61 cents to $2.5834 per gallon.
Natural gas for July delivery gained 3.3 cents to $2.755 per million British thermal units.
At the pump, the national average price of unleaded gasoline fell to $3.353 per gallon Friday from Thursday's $3.369, AAA said.
