Home
Dow recovers nearly 500 points as U.S. stocks roar
Bangladesh News.Net
Tuesday 30th September, 2008
U.S. stocks ended sharply higher Tuesday, a day after posting their biggest one-day loss ever.
The Dow Jones Industrials climbed 485.21 points or 4.68% to close at 10,850.66.
Equity markets in Europe also rebounded strongly.
Investors were pinning their hopes on Washington getting its act together this week to push through the Bush administration's $700 billion rescue package. In a shock move the bill was voted down by the House of Representatives Monday, sending global equity and credits markets into a spin. Lawmakers are now believed to be working overtime to prepare a refined bill which will attract a majority vote.
The Nasdaq Composite which lost more than 9% of its value on Monday, was overwhelmed by buyers Tuesday, pushing the key index up 98.60 points or 4.97% to 2,082.33.
The Standard and Poor's 500 gained 58.32 points or 5.27% to 1,164.74, its biggest one-day gain in six years.
The renewed confidence followed Monday's bloodbath, which many on Tuesday were saying was a gross over-reaction to the political event that unfolded.
The U.S. dollar which curiously rallied strongly on Monday, despite the rejection of the bailout bill, and the consequential collapse in equity markets, even more curiously bounded ahead Tuesday despite the stocks rally.
The euro plummeted to 1.4075 in late trading in New York, down from 1.4430 on Monday, it sbiggest one-day drop in seven years. The European unit was picking up some lost ground in early Australasian trading on Wednesday where it was last quoted at 1.4118.
The move was particularly surprising as European markets traded strongly ahaead of the U.S. opening. At the close of trading Tuesday the FTSE 100 in London was up 1.74%. In Brussells the Bel-20 rose 3.19%. The Paris-based CAC 40 was up 1.99%, and the German DAX 0.41%. The Swiss SMI climbed 2.38%, which didn't help the Swiss franc which dived to 1.1225. The British pound fell to 1.7776. The Japanese yen finished in New York around 106.40, down more than two yen from Monday's close.
The Australian dollar, which rallied from its .7965 close in New York Monday to around .81 cents overnight, again tumbled to .7913. The currency was being bought up in Syndey where it was last quoted at .7945.
The Canadian dollar fell sharply to 1.0640 and was little changed in New Zealand and Australian trading Wednesday.
 Email this story to a friend
Have your say on this story
|
|
