US could add to EU fund

US stocks leapt yesterday on news that America could be ready to support the extension of the European Financial Stability fund by providing extra money to the International Monetary Fund (IMF)

The Dow Jones Industrial Average surged 249 points, or 2.27 per cent, to close at 11,255, while the Standard & Poor’s 500-stock index gained 25 points to 1,206, and the Nasdaq Composite added 55 points, or 2.05 per cent, to 2,549. A US official confirmed there had been talks with the European Commission about possibly enlarging the €750bn (£630bn) EU IMF stability fund adding that although it was a decision for Europe the US would support using the IMF in such circumstances. The remarks came before a visit to Europe this week by a US Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks about the debt crisis. The IMF has committed €250bn to the fund already.