09 September, 2008

Global equities markets saw increases on the session, held on Monday after a move by the US government over the weekend to take control of mortgage lenders Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE).

European markets were higher on the takeover news, but London’s markets suffered after trade was closed for 7 hours there due to a glitch in a computer system at the London Stock Exchange (LSE: LSE), finally reopening at 4 p.m. local time, leaving investors incapable to buy or sell on a day when most other markets in the region saw their major expansion in several months.

At the close of the truncated session, the FTSE 100 had nonetheless added 3.92 percent to 5,446.3 while the FTSE 250 had gained 3.38 percent to 9,270.

Elsewhere in the region, the Eurofirst 300 was increased 3.31 percent to 1,162.74 while the Dax gained 2.22 percent to 6,263.74, the CAC-40 was up 3.42 percent to 4,340.18 and the IBEX was 3.72 percent higher to 11,554.2.

Increases were substantial in the Asia-Pacific region, also due to investor reply to the Fannie Mae/Freddie Mac takeover, with the exception of the Shanghai Composite, which was down 2.68 percent to 2,143.42.

In Tokyo, the banking sector led markets higher as the Nikkei 225 gained 3.38 percent to 12,624.46 and the Topix index and Mothers market each put on 3.89 percent, to 1,216.41 and 441.03 respectively.

Elsewhere in the region, India’s Sensex gained 3.18 percent to 14,944.97 while in Australia the Sydney Ordinaries was 3.57 percent higher to 5,126.3 and the S&P/ASX200 added 3.9 percent to 5,067.5.

The Hang Seng was 4.32 percent higher to 20,794.27, the Straits Times Index added 4.77 percent to 2,697.03, the Kospi was up 5.15 percent to 1,476.65 and the Taiex increased 5.57 percent to 6,658.69.

In early afternoon trade on Wall Street, the Dow Jones Industrial Average added 1.53 percent to 11,392.92 and the S&P 500 was up 1 percent to 1,254.7 but the Nasdaq Composite had dropped 0.26 percent to 2,250.1 after some tech stocks decreased.

Crude oil prices and prices for grains were mixed, while precious metals dropped on the session.

Lower-yielding currencies such as the yen and the Swiss franc weakened as investors are planning to invest in higher-yielding currencies after most global equities markets turned superior.