Wall Street Stocks in Volatile Trading

Wall Street stocks on Thursday extended their six-session losing streak in volatile trading, even after positive results from technology bellwether IBM and as hopes mounted that authorities’ drastic intervention in the financial system would help thaw frozen credit markets.

Before falling back in late morning trading, the S&P 500 was 2 per cent higher at 1,004.23, back above the psychologically significant barrier of 1,000 breached earlier in the week. The Dow Jones Industrial Average rose 1.9 per cent to 9,433.17 while the Nasdaq Composite Index rose 2.6 per cent to 1,784.85.

Canadian stocks rallied for a second day, led by Research In Motion Ltd., after International Business Machines Corp.'s earnings and forecast bolstered optimism for economic growth. The Standard & Poor's/TSX Composite Index gained more than 3 percent in the early trading. At 11:30 a.m. was only 0.24 percent up at 10,080.56.

U.K. stocks rebounded in the early session, but after 3 p.m. FTSE 100 Index started to dec‌ling sharply and at 4 p.m. was down more than 1 percent. Earlier the index was up as much as 2 percent. German stocks followed the same path, at 5:28 p.m. in Frankfurt the DAX Index was 3.75% lower at 4,825.65.

Asian stocks gained after four of the region's central banks cut interest rates, joining a global effort to limit the economic impact of the worst financial crisis since the Great Depression.

The MSCI Asia Pacific Index added 1 percent to 92.33 as of 7:01 p.m. in Tokyo, paring gains of 2.8 percent. The advance ended a five-day, 16 percent drop. The index fell 7.4 percent yesterday, the most since April 1990, on concern the credit crisis will topple more banks and slowing growth will cut demand for exports.

Japan's Topix Index rose 0.7 percent to 905.11, led by Nintendo Co. and Mitsubishi Corp., after the measure became the only benchmark index in Asia to fall below book value and the Bank of Japan pumped $20 billion into the financial system. Nikkei 225 Index lost 0.5% and ended the session at 9,157.49, lower 45.83 points.

Australia's S&P/ASX 200 Index fell 1.5 percent, led by Commonwealth Bank of Australia after it sold shares at a discount. Indonesian stocks were suspended from trading following yesterday's 10 percent drop. India was closed for a holiday.

China's benchmark stock index fell below 2,000 for the first time in three weeks, led by energy and steelmakers on concern a global economic slowdown will cut demand for their products. The CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, retreated 27.58, or 1.4 percent, to 1,995.30 at the close, after earlier rising as much as 2 percent.

Russia's Micex Index rallied as much as 17 percent and emerging market stocks rose the most in three weeks as coordinated central bank rate cuts spurred investors to start buying shares at the cheapest valuations in a decade.

TradingEconomics.com, Bloomberg, Financial Times
10/9/2008 8:55:05 AM