Dow Jones and FTSE 100 both surge on Columbus Day

Dow Jones Industrial Average futures surged 4.1 percent or 344 points to 8,714 as Wall Street began trading on Columbus Day. Nasdaq 100 index futures went up 4.41 percent or 56.50 points to 1,339.00 and Standard & Poor’s 500 index was up 5.06 percent or 45.10 points to 936.10 This is a positive signs that the US market is finding some ground after eight consecutive sessions of losses.

Investors seem to be relieved by the promises of US and European governments working together in fixing the collapsed banking system. The plan includes the Treasury buying US bank stocks. After the weekend’s government action to encourage investor confidence it seems as if it worked with investors from Europe and Asia are already falling over themselves to buy stocks on Columbus Day.

In Asia, Japan’s markets were closed for a holiday, Hong Kong’s Hang Seng index shot up 10.2 percent, in London the FTSE 100 saw an increase of 3.46 percent in afternoon trading, France CAC-40 jumped up 6.09 percent and in Germany the DAX index went up 6.84 percent.

The US government is holding back the decision on when they will inject cash into the US banking system until all the major global markets reopen after the Columbus Day holiday.

Source: ap.google