In a week that saw tumultuous variations in the stock markets given the events in Europe, stocks closed the week with more optimistic outlooks, with the Dow closing at 12,133.82. It was helped by the news in Italy that the Senate approved budget measures. This package of austerity measures, which was demanded by the European Union, will go into vote in the lower house, and ultimately trigger the resignation of Prime Minister Silvio Berlusconi, who announced on Tuesday that he will step down after new economic measures are passed. The passage also lowered the Italian bond yields, which had climbed to record levels earlier this week.
Meanwhile in the United States, aside from bank shares climbing in response to the events in Italy, stocks for Walt Disney rose 6.7%, citing advertising gains and higher ticket prices for increased profit. These developments come one day after the Labor Department announced that the number of people applied for unemployment claims fell to a seasonally adjusted 390,000 last week, the lowest levels since April. While this is an encouraging signs, it's still not at a level to sustain job gains. The outlook in Europe continues to worry Americans, as the debt crisis could push Europe into a recession and hurt American exports.
So while the stocks closed the week on a high note, caution is still needed to claim true progression, as this week's events show the high volatility in the markets in response to global developments.
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