A roundup of trading on major world markets:
NEW YORK – US stocks rebounded Friday after Thursday’s sharp fall, helped by European leaders meeting in Rome signalling a 130 billion euro ($163 billion) stimulus plan for the eurozone economy.
Major banks led the rise, shrugging off ratings downgrades from Moody’s: JPMorgan Chase added 1.6 per cent; Bank of America 1.4 percent; Citigroup 0.5 percent; and Morgan Stanley 1.4 percent. Goldman Sachs though ended 0.2 percent lower.
The Dow Jones Industrial Average made up 67.29 points of Thursday’s 251 point plunge, gaining 0.54 percent for the day to end at 12,640.86.
The S&P 500 gained 9.51 (0.72 percent) to 1,335.02, while the tech-rich Nasdaq rose 33.33 (1.17 percent) to 2,892.42.
LONDON – European stocks slid in anxious trade before Spain announced the cost of bailing out its banks and amid a slew of data that suggested a slowdown in the global economy.
London’s benchmark FTSE 100 index closed down 0.99 per cent at 5566.36 points on Thursday.
In Frankfurt the DAX 30 dropped 0.77 per cent to 6343.13 points, while in Paris the CAC 40 slid 0.39 per cent to 3114.22 points.
Madrid’s IBEX 35 index gave up 0.33 per cent while Milan bucked the trend to edge 0.14 per cent higher amid renewed talk about having the EU rescue funds buy government bonds.
In foreign exchange deals, the euro fell to $US1.2582 from $US1.2702 late on Wednesday in New York.
HONG KONG – Asian markets slipped on Friday following big losses on Wall Street following weak manufacturing data from China and Europe and downgrades for 15 of the world’s biggest financial groups.
The US Federal Reserve’s light-touch stimulus on Wednesday also weighed on share prices with concerns it will not be enough to boost the stuttering economy.
Tokyo fell by 0.29 per cent, or 25.72 points, to 8798.35, Seoul tumbled 2.22 per cent, or 41.75 points, to 1847.40 while Sydney fell by 0.96 per cent, or 39.4 points, to 4048.2.
Hong Kong dived by 1.40 per cent, or 269.94 points, to 18,995.13. Shanghai was closed for a public holiday.
WELLINGTON – The NZX 50 index fell 10.19 points, or 0.3 per cent, to 3399.19.
