Dow Jones makes good 380 points
With joy were attempts to restrictions on short sales. The U.S. Securities and Exchange Commission SEC has stated that they may be at a meeting in April with the re-introduction of a scheme ( “Uptick Rule”) will employ, short sales – that is, betting on falling prices – limit. “That would be another very good news for the financial industry,” said stock market expert James.
The market responded positively to requests from Fed Chairman Ben Bernanke for “improvements” in the accounting rules. The market valuation approach (Mark to Market), after the companies’ shares at the current market price in the balance sheet must lead, has many financial institutions to billion dollar write-offs forced – among other things, AIG. He wanted the Mark-to-market valuation are not abolished, said Bernanke, but some weak points to work on.
Support the Wall Street got beyond statements of the Minister of Finance Timothy Geithner. He had on Monday after a meeting with members of the Democrats in Washington said the U.S. had done in weeks longer than other states in years to the economic problems.
The main reason for the price rally was a letter from Citigroup CEO Vikram Pandit, according to which the once world’s largest bank in January and February, the black has written. Even internal “stress tests” with a very pessimistic assumptions would have revealed that Citigroup has sufficient capital available, it was in an internal letter from Pandit, the Reuters existed. Shares of Citigroup then shot 38.1% to 1.45 $ in the air. In the past week was the first dividend of paper fell below $ 1.
“The market interpreted Citigroup as a positive message. It’s like a small break in the negative rhetoric, which previously came from Washington,” said Peter Cardillo, chief economist for Avalon Partners. The entire financial sector, according to breathe by pandits, dealers said Michael James, the price gains. So climbed the papers of the Bank of America, approximately 27.7%, from 22.6% JP Morgan and Wells Fargo 18.5%. The papers of insurance giant AIG and the last arg beleaguered shares of the conglomerate General Electric shot around 20% upwards.
From the positive trend also benefited the Nasdaq technology index, which on Monday to its lowest level in over six years had fallen. The papers of the iPhone manufacturer Apple submitted to 6.7%, that of the search engine Google gained 5.9%. Increased even more with 8.6% of the equity securities conglomerate United Technologies on. The world’s largest manufacturer of elevators and air-conditioning units had its profit forecasts for 2009 downwards, and the elimination of 12,000 jobs announced.
At the New York Stock Exchange moved about 2.19 billion shares the previous owners. 2918 values appealed to, 221 were referred and 37 remained unchanged. On the Nasdaq closed with sales of 2.39 billion shares in 2243 plus, 468 in negative and 123 unchanged.