U.S. stocks snapped a seven-day decline amid a global equities rally after Thanksgiving retail sales climbed to a record and the Welt am Sonntag newspaper said German Chancellor Angela Merkel and French President Nicolas Sarkozy are planning a stability pact to help solve Europe’s debt crisis. The Standard & Poor’s 500 Index rose 2.9 percent to 1,192.55.
If Washington imposes sanctions, one result will be a loss of American jobs because U.S. companies are both buyers of Chinese products and suppliers of materials, the companies said in a statement. They said Chinese manufacturers spend some $2 billion a year to buy materials such as polysilicon from U.S. suppliers.
“The Chinese household has never faced a decline in property prices of any great significance or extent in terms of time,” Michael Spencer, the Hong Kong-based chief economist for Asia at Deutsche Bank AG, said in an interview with Bloomberg Television. “The worse things get internationally, the more likely we are to see some countries back into, at least temporarily, deflation.”
The Shanghai Composite Index added 0.1 percent to 2,383.03, after reaching a one-month low in the previous trading session, on speculation that China may ease some fiscal policies or credit controls to support economic growth. The measure is trading at 11.3 times estimated earnings, compared with 14.1 for Indian stocks, 10.1 for Brazilian shares and 5.1 for Russian equities.
Youku.com Inc., China’s largest online-video website, increased 4.2 percent in its third day of advances to $17.56. Renren Inc., a Beijing-based social networking website, jumped 4.7 percent, the first increase in a week, to $3.77.
“We applaud the support of the European Union and the U.S. government toward renewable energy. But we are very sorry that SolarWorld has applied such a double standard when they talk about subsidies,” said Canadian Solar’s Qu.