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Markets surge after bank bail-outs

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Markets surge after bank bail-outs

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After one of the biggest one day gains in its history yesterday, Wall Street may find added impetus today on the back of news that the US Treasury is expected to inject 91 billion euros of capital into the country’s top nine banks.

It is the first tranche of a 182 billion euro deal announced yesterday, with more details due later today.

European markets also rose with news of massive banking bail-outs by numerous EU countries.

Asian stocks also surged shortly when trading began this morning, with Japan’s Nikkei up more than 12 percent, after plunging more than 24 percent last week.

In Australia, the main index rose 5.9 percent on opening, after yesterday posting its biggest daily gain since October 1997.

Experts say fears of a looming global recession are not dead, but the sweeping emergency steps enacted by governments have reduced the immediate risk.