Fed cuts rate near zero, global stocks surge (8.55am) 17 December 2008
US stocks surged on Tuesday after the Federal Reserve cut a key short-term interest rate to the lowest level on record, and signalled it had more tools available to help the economy as the recession stretches on. Britains blue chip index ended higher on Tuesday, ahead of the US Federal Reserves rate decision, as energy and pharmaceutical stocks rose. European stocks closed higher on Tuesday as banks gained after results at Goldman Sachs relieved investors, and as markets braced for a rate cut by the US Federal Reserve. Stocks across the Asia-Pacific region rose to a 5-week high on Wednesday, led by developers, after the US Federal Reserve cut interest rates to a record low and said it will use all available tools to stimulate the economy. Markets open for trading across the region advanced, except in India and Pakistan. Crude oil rose on Wednesday for the 1st time in 4 days as stock markets rallied after the US Federal Reserve cut its benchmark interest rate to a record low and pledged to revive the economy. Gold recoiled on Wednesday, giving back more than $10 after a strong showing overnight on the back of the latest US interest rate cut.
