Global stocks surge again: Footsie rallies 4.5% after US agrees $2trillion rescue package
Relief: Stock markets continued their exuberant upswing yesterday after weeks of catastrophic losses for investors
Stock markets continued their exuberant upswing yesterday after weeks of catastrophic losses for investors.
The FTSE100 rallied by 4.5 per cent, or 242.19 points, to 5688.2 points, as traders breathed a sigh of relief that US lawmakers had finally agreed their $2trillion rescue package to bolster the economy.
The sentiment was echoed across Europe’s major stock market indices, as Germany climbed 1.8 per cent, France 4.5 per cent and Italy 1.7 per cent.
Across the pond, the Dow Jones was up another 2.4 per cent after a historic 11 per cent rally the day before, while the broader S&P 500 climbed 1.2 per cent.
But while some investors took the chance to hunt out a bargain and buy on the cheap, others were wary that more falls were yet to come.
John Rekenthaler, vice president of research for analytics firm Morningstar, said: ‘I do not believe that stocks have reached the bottom. ‘After all, they have only recently begun to decline.’