Market relief sees Dow rise

Julian Harris
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TEMPORARY relief lifted stocks across the pond yesterday, with the Dow Jones industrial average ending up 2.47 per cent, paring recent losses.

Investors took comfort from a German court decision that deemed bailouts to Greece to be legal, avoiding a potential banana skin in efforts to resolve the Eurozone crisis.

Optimism also spread from rumours that President Barack Obama is set to announce $300bn (£188bn) in tax cuts and government spending as part of an effort to boost jobs, in a televised speech delivered late tonight.

The Nasdaq gained three per cent, rising to 2,548.94; and the S&P 500 rose 2.86 per cent to close at 1,198.62.

Meanwhile the FTSE trumped its US counterparts, rising 3.14 per cent for the second straight day of gains.

However, the broad-based rise in US stocks was delivered only amidst light trading, while the CBOE volatility index (VIX) – which has rocketed in recent days – falling 9.6 per cent.

Gold, conversely to stocks, eased to $1,817 an ounce, as investors continued to cash in on recent gains, switching across to equities.

Oil was lifted, with Brent crude fetching over $115.80 a barrel in trading in New York – its highest print in over a month.