Wall Street surges on European deal
October 28th, 2011 - 3:50 am ICT by IANSNew York, Oct 28 (IANS) Wall Street surged Thursday, with the blue-chip Dow back above 12,000, after European leaders agreed on a deal to tackle the region’s debt crisis and US third-quarter GDP growth accelerated, Xinhua reported.
Investors breathed a sigh of relief after European leaders agreed early Thursday, after 10 hours of negotiations, that private creditors have to accept a 50 percent cut in the value of the Greek government debt they hold, and the bailout fund would be increased to 1 trillion euros ($1.37 trillion).
Although the full programme can not be finalized until early December, investors were glad to see the 17-nation euro zone was finally taking a critical step to the right direction after several missed opportunities.
Boosted by the wide-spread optimism, all three major average indexes surged about 3 percent and entered positive territory for the year.
Adding to the momentum, data showed US economy gained some much-needed strength in the third quarter. US gross domestic product, the broadest measure of its economic health, grew at a 2.5 percent annual rate in the quarter, nearly doubled compared to the previous three months.
The Dow Jones industrial average gained 339.51 points, or 2.86 percent, to 12,208.55. The Standard & Poor’s 500 jumped 42.59 points, or 3.43 percent, to 1,284.59. The Nasdaq Composite Index soared 87.96 points, or 3.32 percent, to 2,738.63.
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Tags: bailout, blue chip, critical step, debt crisis, dow jones, dow jones industrial, dow jones industrial average, economic health, euro zone, european leaders, gdp growth, government debt, greek government, gross domestic product, nasdaq composite index, private creditors, quarter gdp, right direction, sigh of relief, xinhua