Market uncertainty persisted despite the US Congress adopting President Bush’s multi-billion euro bail-out plan.
Traders in New York cheered when the rescue package was passed.
Despite the news, markets ended down with investor concern over US jobless figures and the overall health of America’s economy.
Chief Market Strategist, Art Hogan said:
‘‘This is something that we already assumed was happening and we are moving on to focus on other things. Unfortunately, when our focus shifts to those other things, to those fundamentals, they don’t look as good and the market doesn’t look as good. So, this is not a silver bullet. We realise that, and we are glad we have it, but it’s not going to cause a huge celebration.’‘
Earlier in the day, the US House of Representatives voted for the bill at the second attempt, after its shock rejection on Monday. In the end, 263 congressmen voted in favour of the new bill, while 171 voted against. The roughly 400 billion euro bail-out aims to buy so called toxic debt to shore up confidence in the system.
And, the battle to buy ailing US bank Wachovia heated up after Wells Fargo agreed to pay more than 10 billion euros. The move upstages a previous government backed bid from Citigroup.