US moves prop up markets
All the share market losses on Tuesday have been recovered as investors reacted to moves in the US to shore up its economy. Following a 75 basis point cut in interest rates by the Federal Reserve earlier in the week, authorities in the US revealed a plan to bail out bond insurers. The announcement helped to push the S&P/ASX 200 Index up 3.1 per cent to 5580.5 points however global markets will be watching the US in the hope that rates will be cut again when it next meets in two weeks' time. Banks and other financial stocks recovered strongly with Babcock & Brown up 21 per cent to $19.50, Macquarie Bank up 9 per cent to $64.03 and National Australia Bank gained 4 per cent to $33.75.
By Sydney Morning Herald