May 26, 2013
Global shares soar on US fiscal cliff hopes
World stock markets surged today, recovering some of the previous week's sharp losses as traders focused on politicians' comments indicating readiness to compromise to avoid the US "fiscal cliff."
Wall Street stocks climbed more than 1.7 percent, extending a rally that began on Friday, while crude oil was up almost 3 percent.
The Dow Jones industrial average was up 183.52 points, or 1.46 percent, at 12,771.83. The Standard & Poor's 500 Index was up 23.85 points, or 1.75 percent, at 1,383.73. The Nasdaq Composite Index was up 54.06 points, or 1.89 percent, at 2,907.19.
European equities rebounded from multi-month lows to post their biggest daily gain in 10 weeks thanks to signs of progress in US talks to avoid a budget crisis.
The FTSEurofirst 300 index provisionally closed up 2.3 percent to 1,091.50 points, while the EuroSTOXX 50 rose 2.8 percent to 2,495.19 points -- both posting their biggest one-day gain since early September and rebounding from multi-month lows.
In Asia, the Nikkei average climbed for a fourth day to a two-month high on growing expectations that Japan's main opposition party will win next month's election and step up pressure on the central bank to ease monetary policy.
The Nikkei advanced 1.4 percent to 9,153.20, comfortably breaking above its 200-day moving average at 9,074.29 and setting its sights on the next resistance level at 9,200.