Relief for shares as Dow holds gains

THE CITY breathed a collective sigh of relief as Wall Street opened with a strong rally 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 at one point over 100 points up on the day. A bout of late profit-taking eventually led the index to close down 45 points at 7,782, testifying to investor caution, but almost all Tuesday's strong gain of 288.36 points had been held.

Earlier in London the FTSE 100 had closed up 66.7 points at 5,235.8, benefiting from the Dow's initial surge. Equity markets in Europe and in Asia came back even more strongly. Hong Kong's Hang Seng Index closed over 4 per cent up, while France's CAC-40 rose 2.3 per cent.

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.

Brokers said that after the savage falls which have wiped out all of this year's gains, stocks were starting to look attractive again.

But with little sign of any large-scale buying, dealers remained sceptical about the markets returning to the highs, set in July, soon. "People see some value, but 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: the bank has written down its holding by DM100m.

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

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

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

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...

Ashdown Group: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Day In a Page

The difference between America and Israel? There isn’t one

The difference between America and Israel? There isn’t one

Netanyahu knows he can get away with anything in America, says Robert Fisk
Families clubbing together to build their own affordable accommodation

Do It Yourself approach to securing a new house

Community land trusts marking a new trend for taking the initiative away from developers
Head of WWF UK: We didn’t send Cameron to the Arctic to see green ideas freeze

David Nussbaum: We didn’t send Cameron to the Arctic to see green ideas freeze

The head of WWF UK remains sanguine despite the Government’s failure to live up to its pledges on the environment
Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Author Kazuo Ishiguro on being inspired by shoot-outs and samurai

Set in a mythologised 5th-century Britain, ‘The Buried Giant’ is a strange beast
With money, corruption and drugs, this monk fears Buddhism in Thailand is a ‘poisoned fruit’

Money, corruption and drugs

The monk who fears Buddhism in Thailand is a ‘poisoned fruit’
America's first slavery museum established at Django Unchained plantation - 150 years after slavery outlawed

150 years after it was outlawed...

... America's first slavery museum is established in Louisiana
Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

Kelly Clarkson: How I snubbed Simon Cowell and become a Grammy-winning superstar

The first 'American Idol' winner on how she manages to remain her own woman – Jane Austen fascination and all
Tony Oursler on exploring our uneasy relationship with technology with his new show

You won't believe your eyes

Tony Oursler's new show explores our uneasy relationship with technology. He's one of a growing number of artists with that preoccupation
Ian Herbert: Peter Moores must go. He should never have been brought back to fail again

Moores must go. He should never have been brought back to fail again

The England coach leaves players to find solutions - which makes you wonder where he adds value, says Ian Herbert
War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003