While you were sleeping: BusinessWire overnight wrap
Wall Street finished the day strongly after indications the government will establish an agency to boost capital to ailing financial institutions, possibly based on the savings and loan clean-up in the early 1990s.
Financial stocks rebounded. Wachovia Corp. gained 59%, Citigroup rose 19% and Bank of America Corp. advanced 12%.
The S&P 500 rose 4.3% to 1206.51, climbing back from a 4.7% drop the previous day. The Dow Jones Industrial Average rose 3.9% to 11019.69 and the Nasdaq Composite Index advanced 4.8% to 2199.10.
Government agencies and major central banks have stepped in calm roiled financial markets and add funds to a banking system that's gone into a freeze. Central banks injected US$247 billion into the system.
Meantime, more evidence emerged on the extent of the US economy's slowdown. The Conference Board's index of leading indicators fell 0.5%.
Gold rose to as much as US$926 an ounce, rounding out a record two-day rally. The precious metal is still down on the year, having reached a record $1,030.80 in March.
Crude oil also gained a second day on optimism about moves to neutralize the financial crisis and concern about disruptions to US supply from successive hurricanes. Oil for October delivery rose 0.7%, to settle at $97.88 a barrel on the New York Mercantile Exchange.
The US dollar gained against the yen on the prospects of a US rescue agency.
The dollar strengthened to 105.51 yen in New York, from 104.66 yesterday. The dollar gained 0.1% to $1.4307 per euro.
US Treasuries fell as demand for the safest securities waned. The Treasury and Federal Reserve are considering a permanent plan to tackle the financial crisis, US Senator Charles Schumer said, according to Bloomberg News.
Two-year notes rose 12 basis points to 1.76%. The 10-year note also gained 12 basis points, reaching 3.53%.
European bonds also fell as central banks coordinated their efforts to bolster liquidity in money markets. The 10-year bond rose 3 basis points to 4.04%.
European stocks declined, paced by Pernod-Ricard SA after the company reported slowing profit growth. The Stoxx 600 Index fell 0.5% to 256.77.
Comments from our readers
No comments yet
Add your comment:
Ecoya changes name to Trilogy as skincare range trumps scented candles
Property For Industry merger with Direct Property Fund is fair, advisers say
NZ Post sees no impact on debt on issue from S and P lowering rating outlook
DNZ annual earnings fall 14 percent, signals $80M capital raising for new acquisitions
Vodafone NZ loses mobile customers for 9th straight quarter
Minnow lender Asset Finance rapped by RBNZ over related party lending
NZ dollar weakens ahead of Federal Reserve comments on stimulus
While you were sleeping Bullard lifts stocks
NZ inflation expectations fall to lowest since June 1999 as growth uptick seen
F and P Healthcare shares rise to two-year high as First NZ raises rating on better outlook