Global shares rally on euro debt deal
Stocks jumped on Wall Street and in Europe as a solution looked possible to the sovereign debt crisis.
The latest eurozone summit package on a bailout of Greece sparked a worldwide sharemarket rally.
Stocks jumped on Wall Street and in Europe as a solution looked possible to the sovereign debt crisis.
The package involves a voluntary 50% write-down investors were set to take on sovereign Greek bonds, plus an increase in the firepower of the euro-zone bailout fund, to about $1.4 trillion.
The Dow Jones Industrial Average surged 339.51 points, or 2.9%, to 12,208.55, reclaiming the 12,000 level for the first time in three months.
A report showing US growth accelerated in the third quarter also helped buoy sentiment. It was blue-chip index’s best daily performance in more than two months.
Financial stocks led the gains, with all sectors in the S&P 500 index advancing moving into positive territory for 2011.
The index was up 3.4% to 1284.59 and is up 14% in October, on pace for its best month since 1974.
The Nadaq Composite closed 3.3% higher at 2738.63.
European stocks, commodity prices and the euro all surged. The euro staged its biggest one-day gain in almost 10 months.
Crude oil was a big winner, with December futures up 4.2% to $US93.96 in New York.
Nevil Gibson
Fri, 28 Oct 2011
Fri, 28 Oct 2011
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Global shares rally on euro debt deal
17585