Photo: By soundfromwayout on Flickr
The Dow is up 275 points and the bulls having a field day.Four big news items from China, Europe, and the U.S. could be making markets surge today.
With new economic data and announcements looking positive on all sides, the cynicism of late Q3 is gone, and Q4 optimism dominates.
Any guesses on how long that will last?
According to news agency Xinhua, the domestic arm of China's sovereign wealth fund, Central Huijin, will reportedly buy shares in the country's banks to bolster the financial system.
The Chinese government now seems to be propping up its stock market. Investors think this is great.
Rompuy delayed a meeting of European leaders by nearly a week, from early next week to October 23.
Investors are optimistic that this delay could be accommodating the drafting of a new plan to end crisis in the eurozone, likely through bank recapitalization. Those hopes were catalyzed by German Chancellor Angela Merkel and French President Nicolas Sarkozy, who told reporters yesterday that they would have a solution 'by the end of the month.'
The Brussels-based bank Dexia is on the receiving end of a bailout, after the French and German governments guaranteed more than $120 billion in its bonds. The Belgian government purchased the struggling bank's Belgian banking operations, and Luxembourg is considering doing the same for the institution's Luxembourg-based banking centre.
While there's no new data out today, better-than-expected U.S. economic data released last week has bolstered hopes that the domestic economy is not in such dire straits.
Jobs, retail, car sales, and construction numbers have not been that bad lately. And housing just can't get that much worse. Goldman's Jan Hatzius wrote that -- for this reason -- his 'base case' just isn't for a recession.