Gündem Haberleri

    U.S. stock futures rise, European shares pare drop on rate cuts

    HotNewsTurkey with wires
    08.10.2008 - 15:03 | Son Güncelleme:

    U.S. stock-index futures climbed and European shares pared declines after the Federal Reserve and five other central banks cut interest rates in a coordinated bid to unlock credit markets. The dollar and government bonds fell.

    Morgan Stanley climbed 7.6 percent and UBS AG advanced 3 percent after the Fed, European Central Bank, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point.


    The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. Separately, China's central bank lowered its key one-year lending rate by 0.27 percentage point.


    "Equity markets are looking for something, anything, to give them hope," said Tony Dolphin, director of strategy and economics at Henderson Global Investors in London, which manages about $125 billion.


    "Today's coordinated interest-rate cut will help address this problem, but more will be needed," he told Bloomberg News.


    Futures on the Standard & Poor's 500 Index added 2.2 percent to 1,027.90 in New York, rebounding from a 4.3 percent decline.


    Europe's Dow Jones Stoxx 600 Index slipped 0.7 percent after earlier falling as much as 7.8 percent.


    Efforts by governments around the world to restore confidence in the banking system have failed to unlock credit markets and stem share declines that sent the MSCI World to the lowest level since August 2004 earlier today.


    The cost of borrowing in dollars overnight in London soared for a third day and European money-market rates climbed to records before the central banks' announcement.


    UBS, the European bank hardest hit by credit-related losses, climbed 3 percent to 19.99 francs. Morgan Stanley, which last month opted to convert itself into a bank holding company, rallied 7.6 percent to $19 in pre-market trading.



      Sayfa Başı