Stocks Rose After China Cut Interest Rates

U.S. stocks opened with strong gains on Thursday after China cut interest rates for the first time since 2008, furthering hope for additional moves by global central banks. The Dow Jones Industrial Average lately rose 135.63 points, or 1.09%, to 12,550.42. The S&P 500 climbed 13.52 points, or 1.03%, to 1,328.65. The Nasdaq Composite added 24.06 points, or 0.85%, to 2,868.78.

China’s central bank on Thursday lowered benchmark interest rates on loans and deposits, and moved to allow rates to float more freely, in a bid to support economic growth and advance reform of the financial system.

The Federal Reserve is set to vote Thursday on whether to propose the so-called Basel capital rules for banks, with regulatory observers arguing that the new buffers could hamper lending and have unintended consequences.

The number of initial applicants filing for unemployment benefits declined last week, the government reported Thursday, but jobless claims remained at a level consistent with mediocre hiring trends. First-time claims fell by 12,000 to a seasonally adjusted 377,000 in the week ended June 2, the Labor Department said.
 
Europe is riding a gathering wave of Chinese direct investment that could bring in $250 billion to $500 billion in fresh capital this decade, generating jobs but giving policymakers headaches in return, a report released on Thursday said.

Samsung Electronics Co. said Thursday it will fight Apple’s move to stop U.S. sales of its new Galaxy phone in the latest flare-up of an intellectual property battle between the world’s top smartphone makers. Samsung said it will vigorously oppose

Apple’s request for a court to ban sales of the Galaxy S III smartphone and still plans to go ahead with the device’s scheduled release in the U.S. on June 21.