World markets overnight: Stocks rebound on Wall Street

Stocks on Wall Street have bounced back from Friday’s steep declines, lifted by upbeat earnings news and easier monetary moves in China.

Stocks kicked off the session sharply higher and stuck to a narrow trading range through the day. At the close, the Dow Jones Industrial Average rose 208.63 points, or 1.2%, to 18,034.93.

The S&P 500 added 19.22 points, or 0.9%, to 2100.90 and the Nasdaq Composite Index gained 62.79 points, or 1.3%, to 4994.60.

The rebound follows a global selloff fuelled by jitters over Greece’s finances and a batch of subpar earnings reports.

But an improvement in the earnings picture, coupled with a recovery in many markets overseas, helped propel stocks from their lows.

Morgan Stanley ’s first-quarter profit and revenue rose, beating Wall Street estimates, as the bank benefited from a stronger environment for deals and trading. Shares rose 1.2%.

Meanwhile, a move from China’s central bank to free up about $US200 billion for banks to lend drew investor attention across the globe.

The People’s Bank of China announced it would cut the reserve requirement by one percentage point, its second reduction in less than a quarter and the biggest since December 2008.

Gains in European stocks added to the positive tone. Germany’s DAX advanced 1.7% and France’s CAC 40 added 0.9%. The Stoxx Europe 600 rose 0.8%, after posting its worst daily loss in three months on Friday.

Chinese stocks fell despite the positive news from the central bank. Hong Kong’s Hang Seng Index posted its biggest one-day decline this year, while the Shanghai Composite fell 1.6%.

Gold, oil and currencies
In commodity markets, gold for June delivery, the most actively traded contract, closed down 0.8% at $US1193.50 an ounce in New York.

Crude-oil futures rose 2% to $US56.38 a barrel on reduced concerns about high US oil storage levels and the Chinese economic stimulus. Brent, the global benchmark, gained 0.7% to $US63.88 a barrel. Both contracts are close to their highest levels for the year.

The Australian dollar sank against the US dollar after Reserve Bank of Australia Governor Glenn Stevens said at a conference in New York that lower interest rates would be ”on the table” at the May policy setting meeting.

The Australian dollar slid to 77.25USc and has fallen 5.4% against the US dollar so far in 2015, after slumping 8.4% last year.

The New Zealand dollar rose closer to parity at 99.11Ac but has fallen against all other major currencies and is trading at 76.41USc, £0.5132, €0.7125, ¥91.179 and 0.7313 Swiss francs.

UPDATED for Wall Street close on 21/4/2015