BUSINESS

Big increase in US home prices sends stocks higher on Wall Street, a day after a decline

03/26/2013 12:08 EDT | Updated 05/26/2013 05:12 EDT
NEW YORK, N.Y. - The latest signs of recovery in the U.S. housing market are sending stocks higher on Wall Street.

The Dow Jones industrial average was up 90 points, or 0.6 per cent, at 14,537 at midday Tuesday.

The Standard & Poor's 500 index rose eight points, or 0.5 per cent, to 1,559. The Nasdaq composite was up 10 points, or 0.3 per cent, to 3,244.

Housing prices rose in January at the fastest pace since the summer of 2006, before the housing bubble popped. The Standard & Poor's/Case-Shiller 20-city price index climbed 8.1 per cent. Prices rose in all 20 cities, led by Phoenix.

Indexes edged higher in France, Britain and Germany as investors gain confidence in a new bailout plan arranged for Cyprus and its banking system.