Thursday, October 27, 2011

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Wall Street rallies on euro zone deal

Stocks rallied at the beginning of trading on Thursday immediately after European leaders decided to increase the region's bailout fund and struck a take care of banks and insurers to just accept Half losses on Greek bonds.

The S&P 500 rose in excess of two percent, breaking due to an investing selection of around 1,230-1,250. The broad index happens to be struggling to push at night levels for weeks as uncertainties over Europe persisted.

Reached after in excess of eight hours of hard-nosed talks between European heads of state, the International Monetary Fund and bankers, the deal also foresees a recapitalization of hard-hit European lenders plus a leveraging on the bloc's rescue fund so it can gain firepower of 1.0 trillion euros ($1.4 trillion).

"We are rallying today since the active players, mostly hedge fund managers and tactical investors, are already very neutral to even short until recently. The market industry increased a lot, however rushing into getting long since they are capitulating," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

"Investors will now deal with data for November, that is definitely supposed to get weak, even worse in December. That would raise up many questions and predictions on the Fed move."

The Dow Jones industrial average jumped 232.57 points, or 1.96 percent, at 12,101.61. The normal & Poor's 500 Index rose 30.20 points, or two.43 percent, at 1,272.20. The Nasdaq Composite Index increased 64.07 points, or two.42 percent, at 2,714.74.

Exxon Mobil Corp was up 0.7 percent to $81.64 soon after the U.S. gas and oil major said profit rose 41 percent in your third quarter, helped by gains in crude oil prices greater refining margins.

Dow Chemical Co rose 5 % at $28.22, even as it narrowly missed quarterly profit expectations.
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