The Deal: Global Stocks Rise as Summers Withdraws
LONDON (The Deal) -- European and Asian stocks rose Monday as it looked increasingly likely that the new chairman of the Federal Reserve will keep monetary policy looser for longer after former Treasury Secretary Larry Summers withdrew his candidature. Summers' retreat leaves Federal Reserve Vice Chair Janet Yellen, who is perceived to be more dovish than Summers, in pole position for the job.
A weekend deal between U.S. and Russia about how to tackle Syria's chemical weapons was seen as taking the Western world further back from the brink of military action in the civil war-ravaged country.
The Hang Seng closed up 337.13, or 1.47%, at 23,251.41, while the Nikkei edged 17.40 higher at 14,404.67. In Germany, the Dax by late morning was up 100.82, or 1.18%, at 8,610.24. A decisive victory for the right-of-center Christian Social Union in weekend state elections in Bavaria boded well for Chancellor Angela Merkel's allied Christian Democrats in national elections on Sept. 23, even though Merkel's minority coalition partner, the pro-business Free Democrats, performed badly in the southern German state.
In the U.K., the FTSE moved up 61.96, or 0.94%, to 6,645.76. Deputy Prime Minister Nick Clegg dismissed suggestions Britain's housing bubble was in danger of bursting, suggesting the Bank of England has the monetary tools to manage such risks. UK Financial Investments Ltd., the government agency managing state banking holdings acquired during credit crisis bailouts, appointed Credit Suisse Group's U.K. chief James Leigh Pemberton to the position of chairman and CEO, just as the government prepares to start selling part of its 40% stake in Lloyds Banking.Standard & Poor's futures were up 19.20 at 1,701.20.
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