As a plan to save the global economy and exchange traded funds (ETFs) took shape lifted markets around the world.
In Europe, stocks soared on strong Wall Street performance, as well as big gains in Asia, reports Pan Pylas for the Associated Press. Markets in Europe reacted positively to the commitment of $2.3 trillion (all of which might not be needed) and the expectation that the United States would join forces with Britain and others to buy ownership stakes in troubled banks.
Germany’s DAX, Frances CAC-40 and Britain’s FTSE 100 rose higher. The FTSE managed to gain despite some bank shares falling sharply after they accepted help.
The 15 eurozone countries said they would guarantee new bank debt until the end of next year, and the government would buy preferred shares.
Britain, which doesn’t use the euro, injected $63 billion into some of the country’s leading banks, reports Jane Wardell for the Associated Press. The government said the ownership stake is strictly temporary.
- iShares MSCI United Kingdom (EWU), down 44.8% year-to-date (black line)
- NETS DAX Index (DAX), down 46.8% since May 22 inception (green line)