2 Jun 2009

World stocks rally on positive data

8:37 am on 2 June 2009

Wall Street stocks shot higher on Monday as reassuring economic data pointed to a positive turn in the economic cycle.

General Motors' long-expected bankruptcy filing lifted uncertainty about the automaker's fate.

Better-than-expected economic data on US manufacturing and consumer income and spending brightened the mood.

The Dow Jones industrial average gained 221.11 points, or 2.6%, to end at 8,721.44.

Standard & Poor's 500 Index rose 23.73 points, or 2.58%, to finish at 942.87.

The Nasdaq Composite Index jumped 54.35 points, or 3.06%, to close at 1,828.68.

European stock markets also rallied on Monday on fresh hopes for an economic recovery as oil and metals prices rose.

In London, the FTSE 100 ended 2% higher as a batch of upbeat data saw optimism about the global economy rise. It closed up 88.25 points at 4,506.19, its highest close since early January.

In Frankfurt, the DAX index ended at 5,142.56 points, up 201.74 or 4.08%.

In Paris, the CAC-40 index closed at 3,379.49 points, up 101.84 or 3.11%.