Asia and Europe rebound on good Dow performance

[gtalum]

I think this will only be a temporary fix; the Fed can't keep cutting interest rates every time the markets slide.

On the other hand, every time they cut rates, it makes my new house (set to close in June) cheaper.

[Chacor]

Asian stocks soared today with Hong Kong's Hang Seng adding almost 11%. However, Europe's had a down day, and the NYSE indexes have opened lower.

[fwbbreeze]

Large declines like the one we have been in are usually followed by a respectable climb. I read recently that the equity markets have declined around 14% over the past 4 months. Historically a decline of this nature is followed by a rise in the markets of 6%-9%. I wish I would have saved the article but it laid out nicely the opportunities once the market finishes its correction.

Hopefully a good stimulus package is in the works. The fed rate cut will boost the sagging real estate market by an untold number. My feeling is that another interest rate cut is on the way in the neighborhood of 50 basis points.

FWBbreeze

[Coredesat]

The Dow fell early but has gained 583 points since its low and is currently up 271 in what is being described as the Dow's best day since November. No idea how THAT happened.

[gtalum]

Crazy market today. But fun to watch.

[Squarethecircle]

That's certainly odd. Is there any implication of a single underlying cause?

[Brent]

That's certainly odd. Is there any implication of a single underlying cause?

People bought?

If you look through history, big drops have always been followed the next day by a big increase, though I do think swinging 600 points is bizarre.

[Squarethecircle]

No, I mean one that will actually have effect on the market in the next few weeks. Obviously people bought; it's hard to believe they bought that much.

Swinging 600 points is insane. When, if ever, was the last time this kind of swing happened?

[Stephanie]

It's been dropping the past week. People & investment companies are starting to buy some bargains.

[Chacor]

Stocks across Europe and Asia have rebounded, following strong gains for US stocks on Wednesday.

By 1040 GMT, London's FTSE 100 index was up 3.1%, in Paris the Cac 40 rose 4.2% and Frankfurt's Dax was up 4.5%.

In Asia, Japan's benchmark Nikkei index closed 2.1% higher, while key share indexes climbed by more than 2% in Mumbai, Hong Kong and Sydney.

The rebound came on hopes of a rescue plan for US bond insurers that could prevent a new wave of asset writedowns.

http://news.bbc.co.uk/2/hi/business/7206125.stm