Wall Street stages massive rally on European rescue plans

October 14th, 2008 - 5:54 am ICT by IANS  

New York, Oct 14 (DPA) Wall Street delivered one its largest gains ever Monday as a series of financial rescue plans around the world and efforts to boost liquidity heartened investors.Stocks were up more than 11 percent on the major US indices.

In its largest-ever point gain, the blue-chip Dow Jones Industrial Average surged 936.42 points, or 11.08 percent, to 9,387.61.

The broader Standard & Poor’s 500 Index rose 104.13 points, or 11.58 percent, to 1,003.35, for its largest percentage gain in nearly 70 years. The technology-heavy Nasdaq Composite Index gained 194.74 points, or 11.81 percent, to 1,844.25.

The rally came after Wall Street’s worst week ever, as fears about the global financial crisis spooked investors, who feared a $700- billion US government bail-out plan would not be enough to unfreeze credit markets.

The US gain came as investors across Europe piled back into stocks, with national bourses gaining ground as key European governments unveiled unprecedented state cash injections Monday to steady their reeling banks, and after a weekend Group of Seven (G7) meeting pledged action to fight the global crisis and the far- reaching government bank rescue plans.

Shares also gained across Asia.

The European governments set up state funds to inject capital into the worst-hit banks and posted more than 1 trillion euros ($1.4 trillion) in guarantees to back up a revival of interbank lending.

Stocks were also boosted by a US Federal Reserve announcement that it and other central banks would take further measures to infuse liquidity into the markets.

The dollar rose against the Japanese currency to 102.02 yen from 100.62 yen Friday. The dollar fell against the euro to 73.68 euro cents from 74.60 euro cents.

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