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

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