US Stocks rallied Monday after European officials approved a nearly $1 trillion rescue plan to contain the debt crisis in troubled nations and stabilize the euro.
The Dow Jones industrial average (INDU) gained 405 points, or 3.9%, the average's biggest one-day point and percentage gain since March 23, 2009.
The S&P 500 index (SPX) surged 49 points, or 4.4%. It was also the best day on a point and percentage basis since March 23, 2009.
The Nasdaq composite (COMP) rallied 109 points, or 4.8%. It was the Nasdaq's best day on a point basis since Oct. 28, 2008, and on a percentage basis since March 23, 2009.
Analyst said "I think investors around the world are reacting well to this bailout because they see that our bailout worked," he said, referring to the $787 billion U.S. stimulus plan approved last year. "There's a price to be paid down the line, but the fact that it did stabilize our markets is reassuring them that the EU bailout will stabilize the euro." "The news out of Europe is positive, but I'm not sure how healthy today's move is," said Paul Brigandi, vice president of trading at Direxion Funds. "It shows we're back in a volatile period. We had a violent selloff last week and this huge rebound today."
LONDON - European stock markets closed sharply higher, boosted by the European rescue plan.
In London, the benchmark FTSE 100 index of leading shares jumped 5.16 per cent, by 264.4 points, to 5,387.42.
FRANKFURT - The DAX 30 closed up 302.82 points, or 5.3 per cent, at 6,017.91.
PARIS - The CAC 40 soared 9.66 per cent, by 327.7 points, to 3,720.29.
Oil snapped a four-day losing streak and rebounded from last week's sell-off, rising to $US78 a barrel on Monday before reversing some gains after Europe and the IMF pledged nearly $US1 trillion ($A1.11 trillion) to help defend the embattled euro.
Benchmark crude for June delivery rose $US1.69 to settle at $US76.80 on the New York Mercantile Exchange. It hit a day high of $78.51 in earlier trading.
The Australian share market has received strongly positive leads from offshore trading overnight, as markets rebounded on optimism following the European rescue plan.
At 0657 AEST on the Sydney Futures Exchange, the June share price index contract was 55 points higher at 4,665 points.
Dominating economic news on Tuesday will be the federal budget, to be handed down on Tuesday evening.
GOLD down $9.60 to US$1,200.80 an ounce SILVER up 10.1c to US$ 18.552 an ounce COPPER up 8.35c at US$3.2280 a pound
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