US stocks have closed with significant gains, a day after the collapse of the giant Wall Street investment bank Lehman Brothers unleashed global financial turmoil.
Mounting speculation that US authorities might step in to finance a rescue plan for the troubled insurance giant AIG helped prompt recoveries across a number of indices. However, the United States treasury has not confirmed that it plans to intervene. Meanwhile, the US Federal Reserve has decided to keep its benchmark interest rate steady at two percent. The decision caught analysts by surprise. Many were expecting it to cut its rate by a quarter of a percent in response to the current pressure on financial markets.
(Deutsche Welle)
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