Dow, World Stocks Bounce Back

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WASHINGTON - It's a new week and perhaps the beginning of a fresh hope for struggling markets at home and abroad.

The Dow closed, Monday, at a record 938 points after a week of devastating losses.  A comparable one-day gain on Wall Street hadn't been seen since 2000.

Stocks soard as the U.S. government continued to lay out its plan to prop up the economy, including plans to buy stakes in world banks.

Trading in Europe and Asia also rebounded after a series of steps taken by world leaders to bring calm the financial panic.

Click play to hear Pat Robertson's comments following CBN News Correspondent John Jessup's report.

Music to Their Ears

It appears investors finally heard the news they liked.

A coordinated front between central banks in Europe and the U.S. brought some relief to the markets after a tumultuous week that sent world stocks tumbling and dragged down the Dow's weekly average by 18 percent - the worst on record.

But this morning a brought a fresh start.

Upon opening, Britain's benchmark FTSE rocketed 5.6 percent. Stocks in Germany shot up 6.6 percent - and France's stocks jumped up 7.2 percent.

It was the same story in Asia.

Hong Kong's Hang Sang soared, closing 10.24 percent higher. Korea and china up 3.7 percent and Australia gained 5.6 percent.

Europe Rolls Out Emergency Plan

The rebound is a result of governments taking extraordinary action.

At a meeting in Paris, European leaders announced an emergency plan to temporarily guarantee future loans for private banks through the end of next year.

Britain, alone, is injecting the country's three largest banks with more than $60 billion.

"We the government are prepared to provide funds for the banking system. We want that to ensure that there is funding then available for mortgages and for small businesses and for business generally," British Prime Minister Gordon Brown said.

Over the weekend there was a major display of unity.

President Bush met with the world's top financial leaders at the White House, agreeing to work together to tackle the crisis and free up credit.

That helped to point U.S. stock futures toward a rebound ahead of Monday's opening bell.

"As soon as the markets realize that central banks and governments around the world will act decisively and have clarity on a timeline for implementation, markets should react more positively," Newedge Group's senior strategist Kirby Daley said.

There's growing support for the Bush administration's plan to use the $700 billion rescue package to buy up bank ownership stakes - all in an effort to help unthaw credit.

Meanwhile, Treasury Secretary Henry Paulson warned that isolationism and protectionism are not the way out, but could make matters worse.

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CBN News
John Jessup

John Jessup

CBN News Washington Correspondent

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