* U.S., European stocks rise, Asian stocks fall
* Euro falls further on Thursday's ECB news
* European bank stocks snap rally
* Oil rises, U.S. treasury yields higher
(Updates to late afternoon trading)
By Sinead Carew
NEW YORK, Dec 9 U.S stocks followed Europe
higher on Friday as investors piled in on the
post-Trump-election rally while the euro weakened against the
dollar as investors continued to digest the European Central
Bank's Thursday decision to extend economic stimulus.
U.S. Treasury yields climbed, with benchmark
yields on track for a fifth straight week of increases on
stronger-than-forecast data on China inflation and U.S. consumer
sentiment ahead of $56 billion in government debt supply next
European shares hit their highest level and had their best
week since January, following the ECB's decision to cut monthly
bond buys to 60 billion euros ($63.7 billion) from 80 billion
and extend purchases to December, three months longer than
analysts had forecast.
The S&P 500 stock index's strongest sectors were consumer
staples and healthcare, which have been two of the weakest in
the rally that followed the Nov. 8 presidential election.
"Today we're seeing money going into some of the lesser
loved sectors since the election, which is telling me the rally
is broadening which is a very positive sign," Randy Frederick,
vice president of trading and derivatives for Charles Schwab in
While some investment managers may be taking their profits
others who did not trust the post-election rally would last are
likely now hoping to show gains on their books for the year-end
by picking up sectors that look less expensive.
"It means there's still new money coming in. People are
worried about getting left behind at this point," he said.
The Dow Jones industrial average was up 89.87
points, or 0.46 percent, to 19,704.68, the S&P 500 had
gained 8.64 points, or 0.38 percent, to 2,254.83 and the Nasdaq
Composite had added 16.64 points, or 0.31 percent, to
The euro fell for the second day after the ECB news gave
the euro zone common currency its biggest daily loss against the
dollar on Thursday since Britain's vote to leave the European
Union in June.
It traded around $1.0541, down 0.7 percent on the day
and down 1.2 percent for the week. The dollar was up 0.5
percent on the day up 0.8 percent for the week against a basket
of major currencies.
"The extension of the program was longer than most had
expected, and a lot of the language ... was pretty dovish," said
Erik Nelson, a currency analyst at Wells Fargo in New York.
"Inflation forecasts were pretty subdued all the way out to
2019, and growth forecasts were pretty low, and the risks are
tilted to the downside."
Europe's STOXX 600 finished up almost 1 percent
even though European bank stocks pulled back 0.7
percent. Reuters reported that the ECB rejected a request from
Italy's Monte dei Paschi di Siena bank for more time to raise
cash. The continent's banking sector was still up
9.5 percent for the week, its biggest jump since December 2011.
Oil rose on growing optimism that non-OPEC producers might
follow the cartel's lead by agreeing to cut output.
U.S. crude settled up 1.3 percent at $51.50 a barrel.
Brent crude settled up 0.8 percent at $54.33.
Spot gold was down 1 percent and was set for a weekly
decline of 1.5 percent, pressured by the stronger U.S. dollar
and expectations of a Fed rate hike.
(Additional reporting by Abhinav Ramnarayan in London; Editing
by Nick Zieminski and James Dalgleish)