Stock markets surge around the globe on hopes of euro solution
Published 28/09/2011 | 05:00
STOCK markets surged yesterday to record the biggest one-day gain since the Greek bailout was announced back in May 2010.
Markets rose around the globe on hopes a deal to end the debt crisis that spread across Europe after the bailout was close.
The euro rose for a third straight day against the dollar -- rebounding from an eight-month low on Monday, settling at $1.3601.
Oil and copper prices made big gains. Oil closed up more than 4pc in Europe and copper rose 4.5pc.
The two commodities are seen as punts on economic growth and fell in recent fears as investors believed the world economy was heading for a slowdown due to the sovereign debt crisis.
Shares saw some of the most dramatic action. In Europe German's DAX index was up 5.29pc yesterday and the French CAC 40 index of leading shares closed up almost 6pc. The ISEQ index of Irish shares closed up 3.24pc.
"The market is beginning to get the feeling that, finally, European lawmakers are moving out of their paralysis," said Peter Cardillo, chief market economist at Rockwell Global Capital.
"There's hopes a global recession can be avoided."
Gains were smaller in the US. The Dow Jones index was up nearly 2pc yesterday with the broader S&P adding 1.2pc, but even there three days of rising prices have lifted the index by more than 5pc. That's the biggest three-day gain in six weeks. (Additional reporting Reuters)