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

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.90%3.85%
15 yr fixed3.07%3.00%
5/1 ARM3.14%3.02%
30 yr refi3.96%3.92%
15 yr refi3.12%3.10%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,232.02 -53.72 -0.29%
Nasdaq 5,089.36 -1.43 -0.03%
S&P 500 2,126.06 -4.76 -0.22%
Treasuries 2.22 0.03 1.37%
Data as of 6:38am ET
Company Price Change % Change
Bank of America Corp... 16.75 0.02 0.12%
Apple Inc 132.54 1.15 0.88%
Hewlett-Packard Co 34.76 0.93 2.75%
AT&T Inc 34.71 -0.36 -1.03%
Microsoft Corp 46.90 -0.52 -1.10%
Data as of May 22

Sections

The record airbag recall and the GM ignition switch recalls has resulted in a huge percentage of cars on the road today having been recalled. More

The True Cost, a new documentary, chronicles the evils of the clothing industry and asks us to stop buying so much cheap stuff More

Sarah Kauss launched S'well to rid the world of plastic water bottles. In five years, she's sold 4 million of her stainless steel bottles. More