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Worldwide Markets Rebound on Euro Rescue
New York. Global equity markets staged a massive relief rally on Monday after officials agreed to a $1 trillion emergency rescue package to avert a festering sovereign debt crisis in Europe from engulfing the rest of the world.
The euro rose and the prices of oil and other commodities surged after the European Union and the International Monetary Fund carved out an emergency rescue package to stop Greece’s debt crisis from spreading.
The surge in equities began in Asian markets after European and IMF officials announced the deal and then caught fire around the world as other markets opened. European shares rose at their fastest pace in more than 17 months, and in the United States the Dow industrials had their biggest move since March 2009.
Policy makers “have, at least for the time being, drawn a line under the liquidity concerns in Europe,” said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. “As a result, we’ve seen risk appetite return to the markets across different asset classes.”
MSCI’s all-country world equity index rose 4.8 percent, while its emerging market index gained 4.5 percent.
The Dow Jones industrial average was up around 400 points, or almost 4 percent. The S&P 500 Index gained more than 4 percent and the Nasdaq Composite rose a similar amount.
“They’ve attacked this problem from all angles and it’s given a big boost to risk markets at the expense of government bonds,” said Nick Stamenkovic, strategist at RIA Capital Markets.
In Asia, Hong Kong shares had their biggest one-day rise in five months, the MSCI ex-Japan index rose 3.4 percent, and Japan’s Nikkei ended up 1.6 percent.
Spot gold fell to $1,183.85 in early trade as the package boosted risk appetite, while commodity prices such as crude oil and industrial metals rose.
New York. Global equity markets staged a massive relief rally on Monday after officials agreed to a $1 trillion emergency rescue package to avert a festering sovereign debt crisis in Europe from engulfing the rest of the world.
The euro rose and the prices of oil and other commodities surged after the European Union and the International Monetary Fund carved out an emergency rescue package to stop Greece’s debt crisis from spreading.
The surge in equities began in Asian markets after European and IMF officials announced the deal and then caught fire around the world as other markets opened. European shares rose at their fastest pace in more than 17 months, and in the United States the Dow industrials had their biggest move since March 2009.
Policy makers “have, at least for the time being, drawn a line under the liquidity concerns in Europe,” said Matthew Strauss, senior currency strategist at RBC Capital Markets in Toronto. “As a result, we’ve seen risk appetite return to the markets across different asset classes.”
MSCI’s all-country world equity index rose 4.8 percent, while its emerging market index gained 4.5 percent.
The Dow Jones industrial average was up around 400 points, or almost 4 percent. The S&P 500 Index gained more than 4 percent and the Nasdaq Composite rose a similar amount.
“They’ve attacked this problem from all angles and it’s given a big boost to risk markets at the expense of government bonds,” said Nick Stamenkovic, strategist at RIA Capital Markets.
In Asia, Hong Kong shares had their biggest one-day rise in five months, the MSCI ex-Japan index rose 3.4 percent, and Japan’s Nikkei ended up 1.6 percent.
Spot gold fell to $1,183.85 in early trade as the package boosted risk appetite, while commodity prices such as crude oil and industrial metals rose.
