Market relief sees Dow rise
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.