Stocks across the world recover
Friday, 10 October 2008
LONDON, Oct 9 (agencies): European markets recovered some of Wednesday's hefty losses after a relatively steady performance in Asia overnight, with British banking stocks in particular enjoying a strong rally in the wake of the government's 500 billion pound ($865 billion) rescue plan.
European shares extended their day's gains in afternoon trade Thursday, up 2 per cent as US stock futures rose strongly and the previous day's concerted global rate cut helped to soothe worried investors.
At 1254 GMT, the FTSEurofirst 300 index of top European shares was up 2 percent at 959.14 points, but still down about 12 percent on the week, on track for its worst week on record.
European jitters appear to have been calmed by Wednesday's simultaneous interest rate cuts from the world's key central banks, even though lending between financial institutions remains limited.
By mid-morning London time, Germany's DAX was 136.99 points, or 2.7%, higher at 5,150.61, while France's CAC-40 was up 110.85 points, or 3.2%, at 3,607.74. The FTSE 100 index of leading British shares was also 136.90, or 3.1%, higher at 4,503.59.
In New York, stocks rose more than one per cent Thursday early trading as a stronger-than-expected profit from technology bellwether IBM suggested that the credit crunch is not stifling all business spending.
The Dow Jones industrial average was up 133.25 points, or 1.44 per cent, at 9,391.35. The Standard & Poor's 500 Index was up 13.58 points, or 1.38 per cent, at 998.52. The Nasdaq Composite Index was up 32.22 points, or 1.85 per cent, at 1,772.55.
Asian stocks rallied and the yen slipped Thursday after central banks from China to Europe and the United States cut interest rates to support the global economy, though investors remained fearful with credit markets still nearly frozen.
Tokyo's Nikkei rose 1.9 percent after plummeting more than 9 percent on Wednesday to its lowest close since June 2003.
The MSCI index of Asia-Pacific shares outside of Japan rose 2.1 percent, after it too tumbled 9 percent on Wednesday, its the biggest single-day fall in at least 20 years.
Hong Kong's Hang Seng index rebounded 2.8 percent after three-days of losses had taken it to the lowest close in two years. Valuations were the lowest since the Asian financial crisis about a decade ago.
Australia's benchmark S&P/ASX 200 index dropped 1.2 percent, led by the mining and bank industries, despite a full one-percentage point cut in borrowing costs earlier this week by the Reserve Bank of Australia.
The S&P 500 index fell for a sixth consecutive day on Wednesday, as investors decided it was safer to sell despite the unified move to stop what has become a financial catastrophe. U.S. stock futures were up 1 percent.
European shares extended their day's gains in afternoon trade Thursday, up 2 per cent as US stock futures rose strongly and the previous day's concerted global rate cut helped to soothe worried investors.
At 1254 GMT, the FTSEurofirst 300 index of top European shares was up 2 percent at 959.14 points, but still down about 12 percent on the week, on track for its worst week on record.
European jitters appear to have been calmed by Wednesday's simultaneous interest rate cuts from the world's key central banks, even though lending between financial institutions remains limited.
By mid-morning London time, Germany's DAX was 136.99 points, or 2.7%, higher at 5,150.61, while France's CAC-40 was up 110.85 points, or 3.2%, at 3,607.74. The FTSE 100 index of leading British shares was also 136.90, or 3.1%, higher at 4,503.59.
In New York, stocks rose more than one per cent Thursday early trading as a stronger-than-expected profit from technology bellwether IBM suggested that the credit crunch is not stifling all business spending.
The Dow Jones industrial average was up 133.25 points, or 1.44 per cent, at 9,391.35. The Standard & Poor's 500 Index was up 13.58 points, or 1.38 per cent, at 998.52. The Nasdaq Composite Index was up 32.22 points, or 1.85 per cent, at 1,772.55.
Asian stocks rallied and the yen slipped Thursday after central banks from China to Europe and the United States cut interest rates to support the global economy, though investors remained fearful with credit markets still nearly frozen.
Tokyo's Nikkei rose 1.9 percent after plummeting more than 9 percent on Wednesday to its lowest close since June 2003.
The MSCI index of Asia-Pacific shares outside of Japan rose 2.1 percent, after it too tumbled 9 percent on Wednesday, its the biggest single-day fall in at least 20 years.
Hong Kong's Hang Seng index rebounded 2.8 percent after three-days of losses had taken it to the lowest close in two years. Valuations were the lowest since the Asian financial crisis about a decade ago.
Australia's benchmark S&P/ASX 200 index dropped 1.2 percent, led by the mining and bank industries, despite a full one-percentage point cut in borrowing costs earlier this week by the Reserve Bank of Australia.
The S&P 500 index fell for a sixth consecutive day on Wednesday, as investors decided it was safer to sell despite the unified move to stop what has become a financial catastrophe. U.S. stock futures were up 1 percent.