September is off to a roaring start as better-than-expected economic news in Australia, China and the US spurred a worldwide rally.Stocks in Australia jumped 2.1% and the rally continued on to Europe, where major indexes in the UK, Germany and France all
September is off to a roaring start as better-than-expected economic news in Australia, China and the US spurred a worldwide rally.
Stocks in Australia jumped 2.1% and the rally continued on to Europe, where major indexes in the UK, Germany and France all packed on strong gains.
In the US, stocks on Wall Street received an extra boost from surprisingly strong manufacturing sector growth, even as jobs data continue to signal a weak recovery.
At the close, the Dow Jones Industrial Average had surged 254.75 points, or 2.5%, to 10,269.47, paced by Caterpillar, which jumped 4.4%.
The S&P 500 index added 2.95% to 1080.29 and the Nasdaq Composite was up 3.0% to 2176.84.
Other markets: Europe, Asia up
European stocks closed higher. The Stoxx Europe 600 index ended up 2.7% at 258.19. The UK's FTSE 100 closed up 2.7% at 5366.41, Germany's DAX gained 2.7% to 6083.90 and France's CAC-40 closed 3.8% higher at 3623.84.
Most Asian stock markets gained as stronger manufacturing activity in China helped investors overcome worries of a slowdown in global activity.
Japan's Nikkei Stock Average rebounded 1.2% to 8927.02, after hitting a 16-month low in morning trading. Australia's S&P/ASX 200 gained 2.1% to 4495.71, Korea's Kospi rose 1.3% to 1764.69 and Hong Kong's Hang Seng Index climbed 0.4% to 20623.83.
Despite China's strong manufacturing data, the Shanghai Composite fell 0.6% to 2622.88.
Commodities: Oil up, gold down
Crude futures extended their gains on strong US manufacturing data and rising equities markets that trumped fears about rising oil supplies.
Light, sweet crude for October delivery traded $US2.19, or 3%, higher at $US74.09 a barrel in New York, rebounding from a 3.7% decline in the previous session.
Gold futures ran into headwinds as the improved economic outlook turned away investors, who had pushed the metal to fresh two-month highs.
The contract for October delivery was down $US4.70, or 0.4%, at $US1,243.60 in New York.
Currencies: Yen up, dollar down
The dollar slumped against its higher-yielding rivals after positive global economic data encouraged investors to dip into currencies closely tied to global growth.
The euro was at $US1.2827 from $US1.2673 late Tuesday. The dollar was at ¥84.56 from ¥84.01, while the euro was at ¥108.45 from ¥106.25.
The UK pound was at $US1.5464 from $US1.5335. The dollar was at 1.0148 Swiss francs from 1.0154.
