Wall Street started to the third quarter positively following a quarter where the three major indices advanced between 11% and 20%. Most sectors were above the line Wednesday, although financials capped gains. 

In economic news, pending home sales grew 0.1% in May, the fourth consecutive month of gains. This was above economist’s expectations and followed a 7.1% climb in April.

Meanwhile, according to an Institute of Supply Management report, manufacturing improved in June. The index rose from 42.8 the previous month to 44.8, however came in 0.1 below forecasts. 

The Dow Jones rose 57.06 points, or 0.68%, to 8,504.06, the S&P's 500 added 4.01 points, or 0.44%, to 923.33 and the NASDAQ gained 10.68 points, or 0.58%, to 1,845.72.

The financial sector was one of the few to struggle. Bank of America, JP Morgan and American Express shed 1.1%, 0.9% and 1% respectively.

Well Fargo and Morgan Stanley lost 0.5% each, while Goldman Sachs edged 0.1% lower.

American International Group slumped 22.1% after the insurer revealed a proposal for a 1-for-20 stock split. The company remains under government control as was made clearer yesterday when a new board of govermnemnt backed directors was voted in.

Tech stocks were mainly in the black. Microsoft, IBM and Apple added 1.1%, 0.4% and 0.3% respectively.

Hewlett-Packard edged 0.1% higher.

Search engines Yahoo! and Google shed 1.6% and 0.6%, while Dell weakened 2.5%.

Kraft Foods jumped 5% after saying it might expand factories in Russia.

Beverage companies Coca-Cola and Pepsi added 2.5% and 2.8%.

Energy stocks rose despite the price of crude dropping. Exxon Mobil and Chevron gained 0.9% and 0.4%, while ConocoPhillips was flat.

Automaker Ford slid 2.6% after reporting an 11% drop in sales during June versus the previous year. General Motors and Chrysler reported 33% and 42% falls in the same period.

NYMEX light crude oil for August delivery fell US58c to settle at US$69.31 a barrel.

COMEX gold for August delivery rallied US$13.90 to settle at US$942 an ounce.

European Markets

European stocks climbed as positive economic data across the globe renewed optimism of a recovery. Miners led the rally, while financials bounced back from the previous sessions losses.

The UK benchmark FTSE 100 rose 91.50, or 2.15% at 4,340.71. France’s CAC40 added 76.56, or 2.44% to 3,217.00, while the German DAX gained 96.80, or 2.01%, to 4,905.44.

Miners strengthened as metal prices increased. Anglo American, Antofagasta and Xstrata jumped 3.9%, 6.3% and 5.5% respectively.

Aussie peers BHP Billiton and Rio Tinto advanced 4.5% and 2.5%.

India’s biggest copper producer Vedanta soared 9.9% in the UK, while German steelmaker ThyssenKrupp gained 3.6%.

Energy stocks were also higher as the crude price climbed before falling away late in the afternoon. BG Group and BP rose 4.2%, 2.6%, while Royal Dutch Shell and Total added 2% each.

Among financials, UK banks Standard Chartered, Barclays and Royal Bank of Scotland gained 3.5%, 2.6% and 2%.

France’s BNP Paribas and Societe Generale advanced 2.5% and 1%.

Commerzbank spiked 18.6% after Germany’s parliamentary parties backed a plan to establish "bad banks" for struggling lenders. Deutsche Bank slid 0.4%.

Retailer Carrefour put on 5.7% after revealing a plan to revamp stores and cut costs with the aim of increasing profits. Marks & Spencer and Metro added 3.8% and 6.2%.

Japanese Markets

Japanese stocks drifted lower Wednesday. A rise in the banks and property stocks was not enough to pull the market into the black on quiet trading.

The Nikkei dropped 18.51, or 0.19% to 9,939.93.

Mizuho Financial climbed 2.2% after announcing a share sale, while Mitsubishi UFJ rose 0.7%.

Property stocks Sumitomo Realty and NTT Urban jumped 1.9% and 5.5% respectively on a broker upgrade.

Orix, Japan’s largest non-bank finance company, slumped 4.8% after saying it make a share offering.

Construction machinery makers rose after positive economic data out of China buoyed investors. Komatsu added 1.8%, while Hitachi Construction Machinery was 1.6% above the line.

All Nippon Airways slumped 5.9% on speculation of another capital raising.

Hong Kong markets

The Hang Seng was closed for a public holiday.