US stocks soared in late trading on 16-Dec-08 as investors applauded the Federal Reserve's decision to cut its target federal funds rate from 1.0%, already at a historic low, to 0.25%. The Dow Jones Industrial Average surged 362.32 points (+4.23%) to 8,926.85, the Nasdaq jumped 81.55 points (+5.41%) to 1,589.89 and the S&P500 index rose 44.69 points (+5.13%) to a preliminary close of 913.18.
Asian shares closed mixed on the day. Japan's Nikkei average slipped -96.64 points (-1.12%) to 8568.02, as investors took profits before the key US Federal Reserve meeting to slash interest rates, while the Australian S&P/ASX200 index was down 35.2 points (-0.98%) at 3556.2. The Hang Seng closed on positive territory up 83.26 (+0.55%) to 15130.21, China's benchmark Shanghai Composite Index on the Shanghai Stock Exchange gained 10.63 points (+0.54) 1,975.01, while the Mumbai Sensex also closed on positive territory up 144.59 points (+1.47%) to 9,976.98.
European stocks also rose on 16-Dec-08. London's FTSE increased 31.52 points to (+0.74% ), closing at 4309.08, the Paris CAC 40 rose 66.0 (+2.07%) to 3251.66, while the Frankfurt Dax 30 was up 75.09 (+1.61%) closing at 4729.91.
Oil prices fell yet again as worries about shrinking global energy demand countered a US Federal Reserve interest rate cut and expectations OPEC will reduce supplies further. Oil prices fell USD0.60 (-2%) to USD43.91 a barrel. Oil ministers from OPEC are expected to announce plans cut output by 2 million barrels a day on 17-Dec-08, while Russia, the top non-OPEC producer, stated it could reduce exports by 320,000 barrels per day to balance oil markets increase prices.
All US airlines rose with the tide on Tuesday, but best performing was US Airways (+12.6%), with news around of its continuing staff reductions and hopes of a better quarter. JetBlue (10.2%) was a winner too, as reduced interest rates and the promise of positive government action offered a better outlook.
And Southwest Airlines (+5.3%) also continued its recovery of confidence, reversing the negative sentiment that has surrounded it in recent weeks.
North America selected airlines daily share price movements (% change): 16-Dec-08
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