Dow rally goes into second day

THE CITY breathed a collective sigh of relief as Wall Street soared for the second day running despite a continuing stream of banks owning up to suffering big hits from the Russian crisis.

The Dow Jones Industrial Average index was trading more than 100 points higher at 7,938.14, a rise of more than one per cent.

The rise followed Tuesday's 288.36 point rebound, reassuring those who feared that the recovery after two weeks of savage falls would prove to be a one-day wonder.

Earlier in London the FTSE 100 had closed up 66.7 points at 5,235.8. Equity markets elsewhere in Europe and in Asia bounced back even more strongly. Hong Kong's Hang Seng index closed more than 4 per cent up, while France's CAC-40 was 2.3 per cent up on the day.

Frankfurt's DAX jumped by a shade under 2 per cent. The German Finance Minister Theo Waigel, said Germany was sticking by forecasts of 3 per cent growth this year despite the Russian crisis.

Brokers said that after the savage falls which have wiped out all of this year's gains, stocks were starting to look attractive again. However, with little sign of any large-scale buying, dealers remained sceptical about the markets returning to the highs set in July any time soon.

"People see some value but they have a nagging doubt that it is all going to go horribly wrong," said Bob Semple at BT.Alex Brown. "I don't see the volatility going away."

Germany's Dresdner Bank came out with figures showing that its lending to Russia stood at DM1bn (pounds 350m) - 32 per cent higher than previously stated - of which 60 per cent is secured by risk provisions. That does not include an undisclosed holding in rouble-denominated bonds where the bank has written down the value of its holding by DM100m.

Two more big American banks, Chase Manhattan and Donaldson Lufkin Jenrette, disclosed losses because of the Russian turmoil.

Chase said it expected to take a $200m (pounds 120m) charge, while DLJ said profits so far this quarter were $40m down from the $120m reported this time last year.

Goldman Sachs, which is in a delicate position ahead of its flotation, said yesterday it had no intention of making any statement about any Russian exposure despite rumours that it too had lost money in the turmoil. The firm insists its exposure is minimal.

The Russian bank, SBS-Agro, yesterday admitted it could not meet $1bn of foreign obligations. SBC Warburg has been appointed to handle the restructuring.

Hamish McRae,

Review, page 5

FootballGerman sparks three goals in four minutes at favourite No 10 role
Rumer was diagnosed with bipolarity, attention deficit hyperactivity disorder and post-traumatic stress disorder: 'I was convinced it was a misdiagnosis'
peopleHer debut album caused her post-traumatic stress - how will she cope as she releases her third record?
A long jumper competes in the 80-to-84-year-old age division at the 2007 World Masters Championships
Radamel Falcao was forced to withdraw from the World Cup after undergoing surgery
premier leagueExclusive: Reds have agreement with Monaco
Arts and Entertainment
'New Tricks' star Dennis Waterman is departing from the show after he completes filming on two more episodes
tvHe is only remaining member of original cast
Life and Style
Walking tall: unlike some, Donatella Versace showed a strong and vibrant collection
fashionAlexander Fury on the staid Italian clothing industry
Arts and Entertainment
Gregory Porter learnt about his father’s voice at his funeral
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
tvHighs and lows of the cast's careers since 2004
Life and Style
Children at the Leytonstone branch of the Homeless Children's Aid and Adoption Society tuck into their harvest festival gifts, in October 1936
food + drinkThe harvest festival is back, but forget cans of tuna and packets of instant mash
Lewis Hamilton will start the Singapore Grand Prix from pole, with Nico Rosberg second and Daniel Ricciardo third
F1... for floodlit Singapore Grand Prix
New Articles
Life and Style
Couples have been having sex less in 2014, according to a new survey
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Senior BA - Motor and Home Insurance

£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...

Market Risk & Control Manager

Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...

SQL Developer - Watford/NW London - £320 - £330 p/d - 6 months

£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...

Head of Audit

To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...

Day In a Page

Scottish referendum: The Yes vote was the love that dared speak its name, but it was not to be

Despite the result, this is the end of the status quo

Boyd Tonkin on the fall-out from the Scottish referendum
Manolo Blahnik: The high priest of heels talks flats, Englishness, and why he loves Mary Beard

Manolo Blahnik: Flats, Englishness, and Mary Beard

The shoe designer who has been dubbed 'the patron saint of the stiletto'
The Beatles biographer reveals exclusive original manuscripts of some of the best pop songs ever written

Scrambled eggs and LSD

Behind The Beatles' lyrics - thanks to Hunter Davis's original manuscript copies
'Normcore' fashion: Blending in is the new standing out in latest catwalk non-trend

'Normcore': Blending in is the new standing out

Just when fashion was in grave danger of running out of trends, it only went and invented the non-trend. Rebecca Gonsalves investigates
Dance’s new leading ladies fight back: How female vocalists are now writing their own hits

New leading ladies of dance fight back

How female vocalists are now writing their own hits
Mystery of the Ground Zero wedding photo

A shot in the dark

Mystery of the wedding photo from Ground Zero
His life, the universe and everything

His life, the universe and everything

New biography sheds light on comic genius of Douglas Adams
Save us from small screen superheroes

Save us from small screen superheroes

Shows like Agents of S.H.I.E.L.D are little more than marketing tools
Reach for the skies

Reach for the skies

From pools to football pitches, rooftop living is looking up
These are the 12 best hotel spas in the UK

12 best hotel spas in the UK

Some hotels go all out on facilities; others stand out for the sheer quality of treatments
These Iranian-controlled Shia militias used to specialise in killing American soldiers. Now they are fighting Isis, backed up by US airstrikes

Widespread fear of Isis is producing strange bedfellows

Iranian-controlled Shia militias that used to kill American soldiers are now fighting Isis, helped by US airstrikes
Topshop goes part Athena poster, part last spring Prada

Topshop goes part Athena poster, part last spring Prada

Shoppers don't come to Topshop for the unique
How to make a Lego masterpiece

How to make a Lego masterpiece

Toy breaks out of the nursery and heads for the gallery
Meet the ‘Endies’ – city dwellers who are too poor to have fun

Meet the ‘Endies’ – city dwellers who are too poor to have fun

Urbanites are cursed with an acronym pointing to Employed but No Disposable Income or Savings
Paisley’s decision to make peace with IRA enemies might remind the Arabs of Sadat

Ian Paisley’s decision to make peace with his IRA enemies

His Save Ulster from Sodomy campaign would surely have been supported by many a Sunni imam