U.S. stocks rose on Monday on upbeat U.S. data and signs that Greece might be nearing a bailout deal, while the British pound plunged versus the dollar on political uncertainty, according to Reuters. Britain's pound fell more than 2 percent to its biggest one-day drop in a year on worries about a coming general election and its impact on the G7 nation's economy. Speculation over a pending EU deal over Greek debt and a rise in mining stocks in Europe kept stocks supported, while copper prices were lifted after a massive earthquake in top producer Chile disrupted supplies. News that UK insurer Prudential would buy AIG's Asian unit also supported U.S. equities at the open. U.S. stocks and the dollar held their gains after data showed U.S. consumer spending increased slightly faster than expected in January, as consumers dipped into their savings amid a small rise in incomes. In addition, the U.S. manufacturing sector grew in February, although at a slower rate than forecast. The Dow Jones industrial average was up 73.16 points, or 0.71 percent, at 10,398.42. The Standard & Poor's 500 Index was up 9.12 points, or 0.83 percent, at 1,113.61. The Nasdaq Composite Index was up 25.56 points, or 1.14 percent, at 2,263.82. U.S. construction spending, however, fell to its lowest level since June 2003 in January, pulled down by a slump in private nonresidential spending and weak public construction. "The manufacturing sector does continue to contribute to the U.S. economic recovery, unlike, say, housing or employment," said Kenneth Kim, economist at Stone & McCarthy Research Associates in Princeton, New Jersey. "This is definitely a bright spot in the overall recovery; it's a confirmation that the economy is continuing to grow. What remains to be seen is how durable the recovery is." The pan-European FTSEurofirst 300 rose 0.76 percent while world stocks as measured by MSCI were up 0.4 percent. Emerging market equities were gaining 1.07 percent. THE RISE OF THE DOLLAR The dollar rose against a basket of major trading-partner currencies, with the U.S. Dollar Index up 1.11 percent at 81.25 from a previous session close of 80.362. The euro EUR= was down 1.18 percent at $1.3464 on continued uncertainty over a bailout package for debt-strapped Greece. Against the Japanese yen, the dollar was up 0.44 percent at 89.24, while the pound was at $1.4893, down 2.3 percent after earlier hitting a low of $1.4781. An opinion poll published on Sunday suggested Britain's ruling Labour Party could remain the biggest party after this year's general election but without a majority in parliament. The prospect of a hung parliament has rattled investors who fear that decision-making would become stymied, undermining a fragile UK recovery. U.S. Treasury debt prices were little changed after the upbeat U.S. data. The benchmark 10-year U.S. Treasury note was unchanged with the yield at 3.6192 percent.
