Chris Cantell Discusses Markets: Markets Speed Up to… by Milota Sidorova

It’s been the day of great shame for Brits and the most desperate day for Americans. British government has approved 31.5 billion pound rescue plan for three biggest national banks that are going to be under government’s administration. It’s a great blow up for famous British independence. As BBC cited, while it’s been the end of financial independence, on the contrary it’s been a day when Gordon Brown reinforced his worldwide position.

Americans however, had a reason to celebrate. Monday markets signed all day rally and stocks jumped impossibly high. After catastrophic last week decline, Dow Jones regained 936 points yesterday and jumped 11 percent that is the biggest day increase since 1933. The main American index went down 22 percent last week, loosing 2,400 points translated into a language of markets a rough drop of $2.4 trillion.
It seems that three international meetings held during the weekend boosted investors‘ confidence and stocks opened sharply higher and followed the line and by noon Dow Jones crossed 9,000 level.
Rally intensified in the last hour when president Bush announced his speech scheduled on this morning assuming more details of rescue plan.
Index S&P 500 rose 104 point or 11,5 percent also technological Nasdaq boostes 195 points or 12 percent Monday.
World markets were soaring as well, impowered by EU leaders promise to temporarily finance main European banks till the end of 2009.

President Bush is going to declare more details of rescue plan today, before the markets open.
According several press sources, Treasury is going to distribute $250 billion in potentially 1000 American banks. According New York Times, 5 biggest banks that have passed this crisis without significant problems will get their pieces of cake as well. Goldman Sachs and Morgan Stanley are going to cash $10 billion, Bank of America and Fargo will receive $20 billion each and Citigroup and JP Morgan Chase will sum up $25 billion during upcoming weeks. The wave of optimism has overflown Wall Street, however investors remain cautious to early outputs. So far, so good.

Financial crisis has inevitably become a major discuss point in upcoming presidential election. Senator Obama is about to meet Senator McCain in final debate held on Long Island on Wednesday, or literally a state so close to the heart of money universe. The theme will be of course credit crunch and elimination other negative economical markers such high unemployment, low vitality of housing markets etc.

Due Columbus holiday bond markets couldn’t stick up to fresh optimistic breeze flowing over financial markets.


related story: http://news.yahoo.com/s/ap/20081013/ap_on_bi_st_ma_re/wall_street;_ylt=AtWcUMehJjPIx5lppNOLHbas0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

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edited by Beata Biskova