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WALL STREET SHARES BUOYED BY UPBEAT CHINA, US ECONOMIC DATA

WALL Street stocks climbed today, with Caterpillar, Intel and Chevron among the gainers as better-than-expected US jobs data and a moderation in China's consumer-price inflation prompted investors to move back into growth-sensitive areas of the market including commodities.
The Dow Jones Industrial Average rose 105.81 points, or 1.05 per cent, to 10,144.19. The Dow is now up 0.76 per cent for the month but down 2.72 per cent for the year to date.

Caterpillar was its best performer today with a rise of $US3, or 5.6 per cent, to $US56.15. Alcoa climbed US42 cents, or 3.2 per cent, to $US13.58. Chevron advanced US98c, or 1.4 per cent, to $US71.73.

All three Dow components were lifted by gains in commodities following the US jobs data and China's consumer-price report.

The materials sector, in particular, has been weighed down in recent weeks by concerns over how demand could be affected by China's efforts to slow down its growth.

"If you look at the drivers behind commodities, it's really the fact that growth is around the corner," said Bob Tull, chief operating officer of Old Mutual Global Index Trackers. "The economy looks like it's turning around here and China's made some positive statements."

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With China's consumer-price inflation having moderated, investors grew hopeful that tightening measures might be less likely in the near term.

Investors were also heartened by a pledge from European Union leaders to support Greece.

European Council president Herman Van Rompuy said in a statement that eurozone countries have pledged to support Greece through its debt crisis. The pledge helped bolster the widening consensus on Wall Street that Greece's neighbours will do what is necessary to support the monetary union.

The Nasdaq Composite rose 29.54 points, or 1.38 per cent, to 2177.41. The Standard & Poor's 500 index climbed 10.34 points, or 0.97 per cent, to 1078.47, led by its materials and energy sectors.

However, David Hefty, chief executive of Cornerstone Wealth Management, said he is still very concerned for the stockmarket.

Mr Hefty sold off the bulk of his equities holdings at the beginning of the month, slashing the weight of equities in his portfolio to 8 per cent from 60 per cent, as he saw the stockmarket's momentum breaking down.

"We could go up on a resolution from Europe, but ultimately that doesn't make the problem go away," Mr Hefty said.

He noted that Greece isn't the only European country struggling with a heavy debt load, while economic troubles remain in the US as mortgage defaults continue and unemployment remains high.

"I don't know if I want to take the risk to squeeze out another 5 per cent or 8 per cent right now," Mr Hefty added.

"If the upside potential is going away and there's more potential for downside than up, our philosophy is to sit on the sides and watch."

The late rally in US stocks helped the euro rebound from an earlier drop to near eight-month lows, but investors yearning for specifics on support for Greece kept the euro depressed on a day when other risk-sensitive currencies, such as the Australian dollar, rallied strongly.

The Australian dollar rose back above US89 cents after better-than-expected employment data in Australia yesterday prompted investors to price a greater chance that the Reserve Bank of Australia will raise official interest rates next month by 25 basis points, to 4 per cent.

The euro has now ceded the gains it had made earlier in the week in anticipation of a deal to support Greece.

In the bond markets, longer-dated US Treasuries were lower, following a disappointing 30-year auction that capped off the government's $US81 billion ($90.9bn) in debt sales this week, which were met with average reception.

However, the shorter-part of the curve found some relief from safe-haven buying, as eurozone officials pledged to support fiscally ailing Greece, but only if needed. The leaders failed to provide a detailed bailout plan.

In late New York trading, the two-year note was flat to yield 0.875 per cent and the 10-year was down 6/32 to 3.733 per cent. The 30-year bond, which fell by more than a point directly after the auction, recently was down by 24/32 to yield 4.686 per cent