Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Stocks leap on rescue plan



LONDON (CNNMoney.com) -- Stocks in Europe and Asia rebounded Monday, boosted by a bold plan to stem the debt crisis that has thrown markets around the world into turmoil.

U.S. stocks soared Monday, with the Dow Jones industrial average up more than 400 points. In Europe, the CAC 40 in France closed 8.76% higher. Britain's FTSE 100 and Germany's DAX were also sharply higher, closing with gains of more than 5%.

Stocks rose after leaders of the European Union reached an agreement Sunday on a more than $900 billion package aimed at containing the region's debt crisis.

In a separate move, central banks around the world, including the U.S. Federal Reserve, announced plans to re-establish a program designed to enhance lending conditions.

The global efforts calmed fretful investors, who for weeks have been worried that spreading debt problems in Europe will slow down the worldwide economic recovery.

In Asia, Japan's benchmark Nikkei index ended Monday's session 1.6% higher and the Hang Seng in Hong Kong rallied 2.8%.

The euro, which has fallen sharply against major currencies recently, climbed on the news of the bailout plan. Commodity prices also gained, with U.S. crude for June delivery jumping 4% to $78.18 a barrel in electronic trading.

The European rescue plan puts the weight of the economies of Germany and France behind weaker members of the European Union, such as Greece, Portugal and Spain.

Europe's debt problems have already deepened beyond Greece. The credit ratings of both Spain and Portugal have been downgraded in recent weeks.

Concerns that Europe will be unable to contain these woes have led to increased volatility in markets worldwide.

In the United States, the Dow, S&P 500 and Nasdaq are all down for the year and the CBOE Volatility index (VIX), better known as Wall Street's fear gauge, is at a 13-month highTo top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.56%3.66%
15 yr fixed2.76%2.72%
5/1 ARM2.94%2.82%
30 yr refi3.55%3.67%
15 yr refi2.80%2.78%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,400.75 -610.32 -3.39%
Nasdaq 4,707.98 -202.06 -4.12%
S&P 500 2,037.41 -75.91 -3.59%
Treasuries 1.58 -0.16 -9.20%
Data as of 6:38am ET
Company Price Change % Change
Bank of America Corp... 13.00 -1.04 -7.41%
Microsoft Corp 49.83 -2.08 -4.01%
Ford Motor Co 12.52 -0.88 -6.57%
General Electric Co 29.82 -1.37 -4.39%
Micron Technology In... 13.21 -0.84 -5.98%
Data as of Jun 24

Sections

Barnes and Noble announced plans to start selling alcohol in some of its stores. And shares of the bookstore chain rallied on the news while the rest of the market was down on Brexit fears. More

The U.K. voted to leave the European Union on Thursday. The vote could affect Americans in a litany of ways. More

Startup Spark examined the effects that political candidates had on the human brain and nervous system using a device called BrainWave. Here's what it found. More