U.S. stocks rise on Europe debt sales, Chinese growth

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Earlier, the Chinese government said its economic growth slowed to 8.9 percent in the fourth quarter. That was the lowest in 2½ years, but still better than the 8.7 percent predicted by analysts.

Chinese growth must stay strong to keep the global economy moving as Europe tips toward recession, said Brian Levitt, an economist with Oppenheimer Funds.

“Many emerging markets are more linked via exports to the Chinese market than to the European economy, so China becomes sort of the lynchpin economic activity across much of the world,” he said.

Asian and European markets closed higher. France’s CAC 40 rose 1.4 percent; Germany’s DAX added 1.8 percent.

Greece’s international lenders are inspecting the nation’s efforts at fiscal and structural reform and negotiating over its next round of bailout cash. Greece continues to rely on international loans to prevent a potentially disastrous default on its bonds.

Greece still lacks a deal with the private holders of those bonds. The international lenders say it needs a deal to get the next chunk of bailout cash.

Among the other U.S. companies making big moves Tuesday:

• Lions Gate Entertainment Corp. rose 4.4 percent after it agreed Friday to buy Summit Entertainment, owner of the blockbuster “Twilight” franchise, for $412.5 million in cash and stock.

• R.R. Donnelley & Sons Co. lost 14 percent after the printing company said its 2011 profit margin will be narrower than it had forecast earlier.

The market was closed Monday for Martin Luther King Jr. Day.

 

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