US indices recovered on thawing credit market

US indices recovered on thawing credit market
# 21 October 2008 08:52 (UTC +04:00)
Baku. Vahab Rzayev - APA-Economics. US stocks rallied on signs the credit market was beginning to thaw. Investors also welcomed suggestions of a second economic stimulus plan to help prevent a prolonged economic slump. The Dow added 413.21, or 4.67% to 9,265.43, while the broader S&P 500 was up 44.84, or 4.77% to 985.39. The NASDAQ gained 58.74, or 3.43% to close at 1,770.03.
The credit markets were gradually responding to the series of bailout measures by governments around the world, including a joint U.S. and European plan to buy stakes in private banks to boost their lending. Demand for Treasury bills, regarded as the safest assets around, lessened Monday but remained relatively high in a sign that there was still much fear in the markets.
Light, sweet crude rose $2.40 to settle at $74.25 a barrel on the New York Mercantile Exchange. Last week, it sank to an almost 16-month low on worries about a deep global recession obliterating fuel demand.
The Russell 2000 index of smaller companies rose 20.41, or 3.88 percent, to 546.84.
Financial markets overseas also jumped. Japan’s Nikkei stock average closed up 3.59 percent. Britain’s FTSE 100 rose 5.41 percent, Germany’s DAX index advanced 1.12 percent, and France’s CAC-40 rose 3.56 percent.
#
#

THE OPERATION IS BEING PERFORMED