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.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.80%||3.88%|
|15 yr fixed||3.20%||3.23%|
|30 yr refi||3.82%||3.93%|
|15 yr refi||3.20%||3.23%|
Today's featured rates:
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More
Honda and General Motors are creating a new generation of fully autonomous vehicles. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More