U.S. Stocks Rise

U.S. stocks climbed for a second day after the government said it will guarantee $306 billion of troubled Citigroup Inc. assets and Democratic lawmakers pledged to pass an economic stimulus package by January.

Citigroup, which lost more than 60 percent of its market value last week, rebounded 52 percent after the Treasury Department also agreed to inject $20 billion into the bank. JPMorgan Chase & Co. added 5.2 percent and Bank of America Corp. rose 11 percent as the guarantee eased concern that a flight of depositors might destabilize Citigroup, which has $2 trillion of assets. Alcoa Inc. and Microsoft Corp. climbed more than 4.5 percent on speculation a new stimulus will spur economic growth.

The Standard & Poor’s 500 Index added 2.9 percent to 823.54 at 10:11 a.m. in New York, its first back-to-back gains this month. The Dow Jones Industrial Average climbed 204.3 points, or 2.5 percent, to 8,250.72. The Nasdaq Composite Index rose 2.6 percent to 1,420.78. Europe’s Dow Jones Stoxx 600 Index increased 4.9 percent, while the MSCI Asia Pacific Index slipped 0.5 percent.

European stocks rallied the most this month after Citigroup Inc. received a government guarantee on $306 billion of assets to help shore up investor confidence.

Europe's Dow Jones Stoxx 600 Index added 5.1 percent to 191.40 at 3:14 p.m. in London, advancing for the first time in four days. All 19 industry groups increased except for auto- related shares.

National benchmark indexes gained in all 18 western European markets. The U.K.'s FTSE 100 rose 6.5 percent as Royal Dutch Shell Plc and BHP Billiton Ltd. climbed. Germany's DAX added 6.3 percent. France's CAC 40 increased 6.2 percent.

Asian stocks fell on mounting signs the credit crisis is hurting profits at financial companies as recessions in the world’s biggest economies deepen.

Most Asian markets fell today, with Japan shut for a holiday. The MSCI Asia Pacific excluding Japan Index lost 0.6 percent to 205.19 as of 6:54 p.m. in Hong Kong. Financial stocks were the biggest drag. The gauge is down 61 percent this year, leaving it at 8.7 times estimated profit, about half its valuation at the start of 2008.

Australian gold mining stocks climbed after the price of the metal jumped. The S&P/ASX 200 Index rose 0.3 percent to 3,425.1 at the close of trading in Sydney, paring its decline this year to 46 percent and extending Friday's rebound from a five-year low.

China’s stocks fell for a third day, led by airlines, after the nation’s largest international carrier said fuel hedging losses tripled. Developers retreated on speculation interest rates may stay unchanged. The CSI 300 Index, declined 83.09, or 4.3 percent, to 1,837.64 at the close.

India's Sensitive Index fell, with ICICI Bank Ltd. leading financial shares lower after JPMorgan Chase & Co. cut its earnings estimates for lenders. It slid 12.09, or 0.1 percent, to 8,903.12.

TradingEconomics.com, Bloomberg
11/24/2008 7:22:32 AM