US Markets ended higher on 11 May 2010

US stocks logged their biggest gains in over a year after the EU and IMF agreed to a USD 1 trillion emergency-bailout package to stem the sovereign-debt crisis
The US stocks logged their biggest gains in over a year after the European Union (EU) and International Monetary Fund (IMF) agreed to a USD 1 trillion emergency-bailout package to stem the sovereign-debt crisis. It was the biggest point and percentage gain for the Dow since March 2009.

The CBOE Volatility Index was just shy of 30 at the closing bell.

Financials, industrials and consumer discretionary – the stocks that got hammered the most last week – led the pack today. Bank of America gained more than 7%, while Citigroup added 5.5%.

The Dow Jones Industrial Average closed at 10,785.14, up 404.71 points or 3.90%. The Nasdaq Composite ended at 2,374.67, up 109.03 points or 4.81% and S&P 500 Index was at 1,159.73, up 48.85 points or 4.40%.

European stocks rallied the most in more than 17 months after policy makers unveiled an unprecedented loan package worth almost USD 1 trillion. The Bank of England left bank rate unchanged at 0.5%/

The PIIGS (Portugal, Italy, Ireland, Greece, and Spain) markets too saw an average gain around 10% each.

John Lipsky, First Dy MD at IMF said, “Given this very critical test, the response has been very very decisive and clear. We have seen a very sharp response in the markets. Of course going forward it will require implementing not only the mechanism itself, not only the mechanisms for fiscal surveillance within the EU but ultimately adjustment measures by the countries themselves that need to restore fiscal balance.”

The euro meanwhile retreated as bailout enthusiasm fades and investors focused on whether the plan would be effective.

Commodities bounced off nearly a 3-month low to close 1.6% higher this session.

June crude oil futures bounced off a near 3-month low and climbed 2.3% higher at 76.80 dollar per barrel.

Industrial metals continued to log gains and gave a thumbs-up to the EU aid package.

Gold meanwhile saw its first lower closing in 4 sessions. It’s right now however at 1200 level in Asia trade.

No related posts.