Saturday, June 30, 2012
Europe’s leaders defy expectations
brussels
Europe’s leaders finally rose to the challenge of a debt crisis that has hobbled economic growth and threatened the global financial system.
Markets roared their approval after leaders of the 27 European Union countries backed bold ideas to help weak countries cope with rising debt levels and frail banks.
For the first time in 19 summits since the start of the crisis, the EU leaders defied low expectations Friday by announcing plans to:
Bail out banks, without putting any financial burden on strapped governments.
Ease borrowing costs on Italy and Spain, the euro region’s third- and fourth-largest economies.
Seek stronger, centralized regulation to European banks.
Rescue floundering countries, without forcing them to make painful budget cuts if they’ve already made economic reforms.
Tie their budgets, currency and governments more tightly.
World markets surge
Financial markets around the world stormed higher Friday after European leaders came up with a breakthrough plan to rescue banks, relieve debt- burdened governments andSFlbrestore investor confidence.
The Dow Jones industrial average climbed 277 points, its second-biggest gain this year, and stocks advanced even further in Europe.
The price of oil posted its biggest one-day increase in more than three years, and other commodities shot higher.
Vindicator wire reports
Selected local stocks
STOCK, DIVIDENDCLOSECHANGE
Aqua America, .66, 24.96 .07
Avalon Holdings,3.65.24
Clear Channel, .73 62.26 1.48
Cortland Bancorp, 10.00.00
Farmers Nat., .126.23 .12
First Energy, 2.20, 49.19.71
FirstMerit Corp., .64,16.51 .33
First Niles Financial, .32,8.09.00
First Place Fin., .62—.03
FNB Corp., .48,10.88.21
General Motors,19.70—.11
General Electric, .68,20.82.61
Motors Liquidation, .0422.00
Huntington Bank, .16, 6.40.21
JP Morgan Chase, 1.20,35.73—.15
Key Corp, .20,7.74.20
LaFarge, 10.97 .68
Macy’s, .80, 34.35.90
Parker Hannifin, 1.64, 76.883.78
PNC, 1.60,61.111.60
RTI Intl. Metals,22.641.05
Simon Prop. Grp.,4.00,155.663.96
Stoneridge 6.80 .19
United Community Fin. 2.98.08
Selected prices at 4 p.m. Friday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.