US, Europe mkts recover; Asia remains weak
Several major stock markets across the world notched up gains on Tuesday on buying at bargain levels, with Dow Jones Industrial Average soaring over 212 points, although Asian bourses remained weak.business Updated: Aug 09, 2011 23:42 IST
Several major stock markets across the world notched up gains on Tuesday on buying at bargain levels, with Dow Jones Industrial Average soaring over 212 points, although Asian bourses remained weak.
After plunging to new lows on Monday, the Wall Street opened on a strong note as investors snapped up shares at attractive valuations amid hopes that Federal Reserve will move to bolster the ailing American economy.
Dow surged 2% in the morning trade to cross the 11,000 mark. The benchmark index was trading at 11,022.56 points. Two other key US indices -- S&P 500 and Nasdaq Composite -- also made significant gains. While S&P gained over 2.5% at 1,147.60 points, the tech-heavy Nasdaq climbed over three% to 2,432.83 points.
Global markets were battered severely on Monday -- the first day of trading after S&P downgraded the US credit rating to 'AA+' from 'AAA' last Friday. Further, the persisting debt turmoil in Europe has also taken a toll on investor sentiment.
Towards the end of trading, European stocks had also recouped most of the losses made earlier in the day. London Stock Exchange's benchmark FTSE 100 index, which plummeted over four%, was marginally up at 5,086.07 points.
German index Dax, that crashed over 5% in the morning session, made a smart recovery and was down only slightly at 5,900.58 points. France's key Cac 40 index was up nearly 1% at 3,151.45 points, after falling more than three% in early trade.
However, Asian markets remained weak, even though most of them managed to recover from heavy losses incurred on Monday. Among the major losers were Hong Kong's key Hang Seng index (down nearly 6%) and Japan's Nikkei 225 (down about 2%).
BSE's 30-share Sensex declined a little less than 1% to close at 16,857.90 points, after wild fluctuations and tanking 550 points earlier in the day.
Investors are keeping a close watch on Federal Reserve's monetary policy statement, expected later in the day. With expectations running high on Fed's next step, any negative opinion could adversely impact the overall market sentiment, especially since fears are rising about another recession.
In one of the worst trading sessions since the 2008 financial meltdown, Wall Street crashed yesterday, with the Dow Jones plunging over 634 points.