Europe Markets Soaring- Our Markets next?

European stocks soaring, U.S. futures mildly positive

RTGAM

Well, as long as it was fraud and not more subprime shenanigans, who cares?
European investors appear to have shrugged off the revelation by French bank Societe Generale that it has been defrauded of the equivalent of $7.14-billion (U.S.) by an alleged rogue trader.
Key European indexes are still surging ahead in early afternoon trading across the Atlantic, feeding on the startling rebound in U.S. and Canadian equity markets late yesterday, apparently sparked by rumblings that a rescue package may be in the works for bond insurers.
The Dow Jones Euro Stoxx 50, for instance is up more than 5.6 per cent, Britain's FTSE 100 4 per cent and Germany's DAX more than 5.8 per cent.

As for U.S. stock index futures, they were still pointing towards at least a mildly positive opening shortly after 7.30 a.m. (EST), although they have been slipping from earlier highs.
The March contract based on the Dow Jones industrial average was up 29 points at 12,301 having been 43 points ahead about half an hour earlier, while the S&P 500 contract was up 3.60 points to 1,345.10, down from an earlier gain of 8.20 points. And the Nasdaq 100 March contract was up 8 points at 1,815, down from a 12.25-point gain earlier.

Meanwhile, in developments that could bode well for the resource-heavy Canadian stock market, base metals prices have rallied a little overnight and crude oil, too, has climbed back a little.
At noon GMT, U.S. crude was up $1.43 (U.S.) to $88.42 a barrel, and Brent crude was up $1.46 to $88.08.




Copyright 2001 The Globe and Mail