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US market surge on data

19 September 2008 09:40 (UTC +04:00)

Baku. Vugar Mustafayev - APA-Economics. Markets were buoyed by a renewed Wall Street after global central banks overnight pumped as much as $US180 billion ($228 billion) into money markets to combat the worst financial upheaval since the Great Depression.
After a choppy session yesterday on Wall St, the Dow Jones industrial average was up 410.03 points, or 3.86 per cent, to end at 11,019.69. The tech-heavy Nasdaq jumped 100.25 points (4.78 per cent) to 2199.10 and the Standard & Poorâ€™s 500 index rallied 50.12 points (4.33 per cent) to 1206.51.
he US market gained ground on news of a flood of liquidity being pumped into the financial system by central banks a day after an extraordinary freeze-up of credit.
The worldâ€™s top central banks joined forces to throw a multi-billion dollar lifeline to global markets in a dramatic effort to free up bank-to-bank lending frozen by upheavals on Wall Street.
In an unprecedented move, the US Federal Reserve made an extra $US180 billion ($224 billion)available to other major central banks to lend to their local commercial banks in a bid to get US dollars circulating in overnight and short-term money markets.
But sentiment was hurt by fresh worries about key banking and brokerage firms, until a rally inspired by a report that Treasury Secretary Henry Paulson was mulling the creation of a new agency to deal with the current crisis.
News of the government rescue bid came too late for European markets, where investors took quick profits on early gains made after the unprecedented central bank action.
In London, the FTSE 100 index lost 0.66 per cent to 4888.00 points, having been more than 1 per cent higher at one stage.
In Paris, the CAC 40 shed 1.06 per cent to 3957.86 points to breach the key 4000 points support level while in Frankfurt, the DAX managed to just hold in positive territory to finish up 0.04 per cent at 5863.42 points.