7 Oct 2009

US markets up

5:06 pm on 7 October 2009

Stocks rose on Wall Street on Tuesday after Australia became the first G20 country to raise interest rates since the onset of the financial crisis. There is also optimism for a strong earnings season in the United States.

The increase in the official cash rate by the Reserve Bank of Australia was the first in 19 months, by 25 basis points to 3.25%.

RBA Governor Glenn Stevens said the Australian economy has rebounded better than expected from the global financial crisis.

The Dow Jones Index was up 108 points to 9707 on Tuesday. The Nasdaq Composite was up 39 points to 2097.

In Europe, the FTSE100 in London was up 2.3%, the CAC- 40 index in Paris was 2.6% lower and the DAX in Frankfurt was up 2.7%.