US markets

U.S. blue-chip stocks rose Thursday, but other measures lagged as risk-averse investors dumped materials and technology shares. The Dow Jones Industrial Average rose 64.25 points, or 0.54%, to 11961.52, recovering part of a 179-point tumble Wednesday to a three month low. The Standard & Poor's 500 stock index gained 2.22 points, or 0.18%, to 1267.64. The measure's defensive utilities and consumer staples components advanced, but the materials sector fell sharply. The Nasdaq Composite slid 7.76 points, or 0.29%, to 2623.70, pushing the technology-heavy index deeper into the red for 2011.

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Anxious investors were wary of riskier segments of the market as nerves continued to fray over the Greek-debt situation. A Greek default would lead to massive losses for creditors, and could lead to another global credit crunch. A mixed batch of economic data also underscored the uncertain state of the U.S. economy. Reports that U.S. home construction rose modestly in May and initial jobless claims dropped more than expected cheered investors early in the session. But stocks turned negative briefly midmorning following a discouraging reading on mid-Atlantic manufacturing activity. American Express was the blue-chip Dow's strongest component, advancing $1.13, or 2.4%, to 48.41. Alcoa led the measure's decliners, losing 17 cents, or 1.1%, to 14.79.

European markets

European stock markets ended lower Thursday, with the benchmark index in Athens falling sharply on persistent fears about the outcome of Greece's debt crisis. The Stoxx Europe 600 index fell 0.5% to finish at 266.73, recovering from its intraday lows. The index fell 1.1% Wednesday after European officials appeared at logjams on the Greek issue. The selling continued Thursday, even as the European Union's Olli Rehn and the International Monetary Fund said that the next tranche of Greek aid is likely to be approved Sunday at a meeting of euro-zone finance ministers. Rehn, the EU's economic and monetary affairs commissioner, also said officials are likely to decide on a second bailout package for Greece and the nature of private-sector involvement in early July. The ASE Composite index slumped 2.8% to 1,208.09 in Athens. Shares of National Bank of Greece and Alpha Bank each fell more than 4%. In an attempt to push through unpopular austerity measures, Greek Prime Minister George Papandreou said Wednesday he would reshuffle his cabinet. Protests against austerity measures intensified Wednesday, turning violent at times. Major French banks were under pressure for a second day after three were put on review for possible downgrade by Moody's Investors Service Wednesday because of their exposure to Greek debt. Of those three, Societe Generale SA fell 1.7%, while both Credit Agricole SA and BNP Paribas SA were 0.4% lower. Also pressuring France's CAC 40 index--which slipped 0.4% to 3,792.31 was Carrefour SA, which fell 3.5% after UBS cut the retailer to sell from neutral. The German DAX 30 index edged down 0.1% to 7,110.20, with retailer Metro AG falling nearly 3%. Among the gainers, shares of Deutsche Lufthansa AG rose 1% after an upgrade to overweight from equal weight at Morgan Stanley. In London, the FTSE 100 index dropped 0.8% to 5,698.81, sagging under the weight of losses for resource stocks. Among miners, Anglo American PLC was down 1.8% and Lonmin PLC fell 3.4%. Retailers were also lower after data showed that U.K. retail sales dropped in May. Shares of Kingfisher PLC fell 1.5% and Next PLC dropped 1.6%.

Asian markets

Asian shares fell sharply Thursday, as investors reacted to fresh developments on Greece's sovereign-debt crisis and some disappointing U.S. economic data. Hong Kong's Hang Seng Index fell 1.7% to 21953.11, hitting a fresh intraday low for 2011 along the way. The Shanghai Composite Index ended down 1.5% at 2664.28, the Nikkei Stock Average fell 1.7% to 9411.28, and South Korea's Kospi dropped 1.9% to end at 2046.63. In Tokyo, exporters sensitive to European markets were down, with Canon off 1.8% and Nikon 2.3% lower. Energy companies were also hit after a fall in benchmark Nymex oil futures, with Japan's Inpex Corp. down 3.8%. In China, resource stocks took a beating on weaker global commodity prices Wednesday, and as the sector could face more selling pressure in the near term with investors continuing to fret about the pace of the global economic recovery and demand for resources, said analysts. Zijin Mining Group fell 3%, China Coal Energy slid 2.3%, and PetroChina dropped 1.8%. Meanwhile, shares of luggage-maker Samsonite International SA ended its trading debut in Hong Kong with a 7.7% from its initial public offering price.

Base metals

Base metals closed lower on the London Metal Exchange Thursday, weighed down by a cocktail of bearish factors as market players continued to look to the macro newsflow for direction. Weak economic data from the U.S. and ongoing fears that debt-laden Greece may be heading toward a credit default kept risk aversion elevated and conspired to send LME three month copper down 1.0% to close at $9,065 a metric ton. The Commerce Department Thursday reported that U.S. home construction rose by less than expected last month, and the Labor Department said weekly initial jobless claims remain above the key 400,000 level. Nickel saw the worst losses, dropping 1.9% to $21,600/ton, followed by zinc and lead, which lost 1.8% and 1.4%, respectively. Copper's relative buoyancy, in contrast, may be a reflection of a slight uptick in confidence in copper following recent reports of falling stockpiles in China, analysts said. U.S. oil futures hovered around $95 a barrel Thursday, with traders hesitant to take large positions a day after crude's steep selloff. Light, sweet crude for July delivery settled up 14 cents, or 0.2%, at $94.95 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded up $1.01, or 0.9%, at $114.02 a barrel. Nymex futures failed to gain momentum despite a report from the International Energy Agency raising its medium-term oil price forecast. Additionally, the Commerce Department said U.S. home construction rose modestly in May, while the number of jobless claims last week fell slightly. Gold futures rose, as worries about a Greek debt default sent investors seeking a refuge in precious metals and the dollar. The most actively traded gold contract, for August delivery, settled up $3.70, or 0.2%, at $1,529.90 a troy ounce on the Comex division of the New York Mercantile Exchange. Thinly traded June-delivery gold also gained $3.70, or 0.2%, ending at $1,529.30 an ounce.

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