Monday, October 29, 2012

Market, Banks Pop on Italian Budget Deal; Dow Jumps More Than 200 Points

A vote to boost growth and impose new austerity measures in Italy is helping boost markets early on Friday.

The Dow recently rose 225 points after the Italian Senate agreed to a budget deal for 2012 that could keep Italy from going the way of Greece. Italy’s lower house will vote on the deal on Saturday; if approved, the Italians can install a new government to replace Silvio Berlusconi’s center-right coalition.

Bank stocks are rising, with Bank of America (BAC) up 3.8%. But financial stocks are still trading at very beaten-down levels, and this vote by no means leaves them in the clear.

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