By Markets Media

Back In Business

Traders decide to shrug off Tuesday’s negative sentiment and downturn with a fresh rally to get the bulls going.

Whereas Tuesday was an overall slaughter in U.S. equity markets, Wednesday saw concentrated selling in specific names, including one particular broker-dealer exposed to sovereign debt, as well as Amazon.com after an important earnings miss.

U.S. financials rallied hard in mid-to-late day trading with large banks posting large percentage point gains. SSGA’s Financial Select SPDR ETF XLF closed up 1.7 percent at 13.25.

Meanwhile, the S&P 500 rallied to 1242, up one percent whilst the Dow shot up to 11,869, up 1.4 percent.

But trouble remains as traders eye the 1250 level on the S&P and 12,000 level Dow Jones Industrial Average. Europe remains at an impasse on what to do about Greece’s debt and in what capacity the EFSF will function in terms of doling out assistance to EU nations.

More information is expected to come by Friday morning with a clearer picture of how banks and investors will handle Europe’s debt crisis. Greek bondholders could see a haircut of up to 50 percent that has been widely reported.

Related articles

  1. Warsaw Stock Exchange Aims to Continue IPOs

    The Nordic and Baltic exchanges had record IPOs and trading volumes.

  2. It is important to maintain the voluntary nature of the standard.

  3. Industry Warned to Push Ahead with MiFID II Plans

    Proposed changes would lead to an unsustainable level of additional cost and liability for issuers.

  4. The regulator seeks input on the use of DLT for trading, settlement and regulatory reporting.

  5. Tradeweb Draws Buy Side in Europe

    The strategic move taps into the existing geographic infrastructure within TP ICAP.