By Michael Patterson
Sept. 8 (Bloomberg) -- Stocks rose in Europe and Asia, sending the MSCI World Index to its biggest gain since July, on speculation the U.S. government's takeover of Fannie Mae and Freddie Mac will shore up the mortgage market. U.S. index futures climbed, while Treasuries fell the most in two months.
UBS AG, the European bank hardest hit by subprime-related losses, and Mizuho Financial Group Inc., Japan's biggest lender by assets, surged more than 10 percent after Treasury Secretary Henry Paulson said the government will provide short-term funding to the two biggest U.S. mortgage-finance companies and purchase debt backed by home loans. Citigroup Inc. climbed 5.9 percent.
The takeover of Fannie Mae and Freddie Mac ``is the beginning of the end of the problem,'' Lucy MacDonald, the London-based chief investment officer of global equities at RCM Ltd., which has $100 billion under management, said in an interview on Bloomberg Television. ``We'll see a floor put under financial shares.''
The MSCI World added 1.7 percent to 1,290.25 at 11:40 a.m. in London as all 10 industry groups except for health-care companies rose. Europe's Dow Jones Stoxx 600 Index and the MSCI Asia Pacific Index each climbed the most since January, advancing 3.9 percent and 4.5 percent, respectively. Futures on the Standard & Poor's 500 Index rose 2.9 percent.
The London Stock Exchange said a computer fault caused the longest halt of trading in more than eight years.
U.S. government notes fell, pushing 10-year yields up by the most since July 11, as investors moved to higher-yielding assets and speculated the Treasury may boost debt sales.
Sept. 8 (Bloomberg) -- Stocks rose in Europe and Asia, sending the MSCI World Index to its biggest gain since July, on speculation the U.S. government's takeover of Fannie Mae and Freddie Mac will shore up the mortgage market. U.S. index futures climbed, while Treasuries fell the most in two months.
UBS AG, the European bank hardest hit by subprime-related losses, and Mizuho Financial Group Inc., Japan's biggest lender by assets, surged more than 10 percent after Treasury Secretary Henry Paulson said the government will provide short-term funding to the two biggest U.S. mortgage-finance companies and purchase debt backed by home loans. Citigroup Inc. climbed 5.9 percent.
The takeover of Fannie Mae and Freddie Mac ``is the beginning of the end of the problem,'' Lucy MacDonald, the London-based chief investment officer of global equities at RCM Ltd., which has $100 billion under management, said in an interview on Bloomberg Television. ``We'll see a floor put under financial shares.''
The MSCI World added 1.7 percent to 1,290.25 at 11:40 a.m. in London as all 10 industry groups except for health-care companies rose. Europe's Dow Jones Stoxx 600 Index and the MSCI Asia Pacific Index each climbed the most since January, advancing 3.9 percent and 4.5 percent, respectively. Futures on the Standard & Poor's 500 Index rose 2.9 percent.
The London Stock Exchange said a computer fault caused the longest halt of trading in more than eight years.
U.S. government notes fell, pushing 10-year yields up by the most since July 11, as investors moved to higher-yielding assets and speculated the Treasury may boost debt sales.
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