World markets have reacted positively to optimism that the US Federal Reserve is likely to lower ...
World markets have reacted positively to optimism that the US Federal Reserve is likely to lower interest rates again next month.
Investors have become more confident that stocks bottomed when the Nasdaq reached a 2 ½ year low on April 4.
The Dow Jones Industrial Average closed above 11,000 for the first time since September, and the Nasdaq Composite Index had its biggest gain in a month.
Pfizer Inc., Merck & Co. and other drug stocks led the advance, while Cisco Systems Inc, Intel Corp., Sun Microsystems Inc. and Microsoft Corp. also boosted major indexes.
The Dow surged 342.95 to 11.215.92, with 29 of its 30 members rising. The Nasdaq climbed 80.86 to 2166.44. The Standard & Poor's jumped 35.55 to 1284.99, as all 11 of its industry groups gained.
UK stocks also rose on the back of optimism for further US Federal Reserve interest rate cuts.
The Footsie rose 68.80p to 5953.80. ARM Holdings Plc, Misys Plc, Sage Group Plc and Logica Plc all advanced. ARM Holdings, Europe's biggest designer of semiconductors, gained 21.75p to 368.75.
Mysis, the UK's biggest provider of software to financial companies rose 28p to 593.
Marconi Plc, the UK's largest phone-equipment maker, climbed 11.5p to 396.5 and CMG Plc, an Anglo-Dutch computer services company, gained 14p to 413.
Asian stocks also rose, led by Toyota Motor Corp. and Samsung Electronics Co. The improvement was based on optimism that the US Federal Reserve will again lower interest rates and revive demand for the region's exports.
Japan's Nikkei 225 stock average rose 1.6% to 13,910.67, Korea's Kospi soared 4.2%, and Hong Kong's Hang Seng Index rose 2.3% to 13,643.35. Australia's S&P/ASX 200 climbed 0.9%, to a record 3410, led by Rio Tinto and BHP as lower global rates are seen boosting demand for raw materials.
Partner Insight: For Blackfinch, the arrival of its IHT portfolio services was a 'natural evolution' in the group's offering and points to an established track record of returning cash to investors.
Senior Managers Regime
Interest rate outlook unchaged
FCA made demands last week