USA loses AAA credit rating from S&P

[evergreen]

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.

Read full article

My prediction:
1. Further dive in stock market worldwide over the next week because:
- Investors who were slow at acting or hoping to hold realise that there is further downside will dump the shares.
- Margin calls and force selling if investors don't pay up.
- Punters taking short positions.
- Fund managers selling to make payout to investors who are selling or switching funds.

2. Limited recovery in stock market for the rest of the year.

3. It's not the end of the world. Some companies will still make record profits in downturns and recessions.

[Fisherman]

S&P cut the long-term U.S. credit rating by one notch to AA-plus on concerns about the government's budget deficits and rising debt burden. The move is likely to raise borrowing costs eventually for the American government, companies and consumers.

"The downgrade reflects our opinion that the fiscal consolidation plan that Congress and the Administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government's medium-term debt dynamics," S&P said in a statement.

Read full article

My prediction:
1. Further dive in stock market worldwide over the next week because:
- Investors who were slow at acting or hoping to hold realise that there is further downside will dump the shares.
- Margin calls and force selling if investors don't pay up.
- Punters taking short positions.
- Fund managers selling to make payout to investors who are selling or switching funds.

2. Limited recovery in stock market for the rest of the year.

3. It's not the end of the world. Some companies will still make record profits in downturns and recessions.

What is your take on interest rate? Will the downgrade cause it to spike??

[flagship74]

What is your take on interest rate? Will the downgrade cause it to spike??

Maybe..

[Fisherman]

Read from another forum, the downgrade will most likely impact the SOR but not sure about SIBOR though.

[Fisherman]

silverefforts wrote:I just chat with someone online and it came to my mind that the thing that is going to affect us most is the possibility of higher SOR rate due to the US downgrade.

In recent years, financially-savvy singaporeans have taken up mortgage loans pegged to SOR instead of mainstream SIBOR due to the weak USD and low US rates. Sometimes, SOR was like 1/2 of SIBOR.

Rightfully, if US borrowing costs go up, SOR could be repriced higher.

good point.

[mantrix]

self-fulfilling prophecy...

[Laguna]

downgrade has been fully priced in

[land118]

http://www.channelnewsasia.com/stori...145414/1/.html

Asia moves to calm US debt downgrade fears
Posted: 06 August 2011 1207 hrs

HONG KONG: Japan led Asian governments in seeking to calm fears over the American debt downgrade on Saturday, saying Tokyo's trust in US Treasuries remained unchanged.

Standard & Poor's has cut the US rating a notch from the top flight triple-A to AA+, saying its politicians were becoming less able to get to grips with the country's huge fiscal deficit and debt load.

But Japan, the second largest holder of US debt after China, said the move would not affect its confidence in US government bonds, while Australia and South Korea warned against over-reacting to the downgrade.

"The trust we have in US Treasuries and their attractiveness as an investment will not change because of this action," an unnamed senior Japanese government official told Dow Jones Newswires.

Another official also said that Japan's investment policy regarding its foreign reserves remains unchanged, the newswire said.

Japan is unlikely to sell any of its dollar-denominated assets as it is fighting to stem the yen's rise to near a record-high against the greenback.

China, which held $1.15 trillion of US debt at the end of April, according to the state news agency Xinhua, has yet to react to the downgrade.

But Xinhua has launched stinging criticism of US lawmakers in recent days over their deal to raise the limit on the country's borrowing, saying Washington had simply taken on new debts to repay old ones.

S&P gave a negative outlook for the US, saying there was a chance its rating could be cut again within two years if progress is not made cutting the government budget gap.

The downgrade followed days of heavy losses on stock markets around the world, as investor confidence was hammered by fears for the US economy and a warning from the head of the European Commission that the eurozone debt crisis had likely spread.

South Korea held an emergency meeting of senior finance ministry officials on Saturday to discuss possible fallout from the downgrade, but warned against over-reaction.

"There is possibility that South Korea's economy might be affected in the short term," Vice Finance Minister Yim Jong-Yong said after the meeting.

"However, there is no need to be concerned excessively about our economy and financial markets."

Yim also called for talks with policymakers from the central Bank of Korea and financial watchdog bodies on Sunday to discuss what actions Seoul should take ahead of markets reopening on Monday.

Australian Prime Minister Julia Gillard also urged a measured response to the downgrade, pointing out that it was not unexpected and the two other key agencies still rated US debt at top grade.

"Standard and Poor's had been signalling for some time that unless they saw a certain figure of budget cutbacks out of the discussion that there's been in Washington about the American budget and fiscal consolidation, that they were intending to do that downgrade," she said.

"At the same time, the other two major ratings agencies, Moody's and Fitch, continue to have the American economy rated at AAA. So I think people just need to look at all of the facts."

Australian stocks plunged 4.00 percent on Friday, the worst losses seen in a single session since the height of the 2008 financial crisis, but Gillard insisted on Saturday the country's economic fundamentals were strong and could weather any financial storms that were brewing.

In Kuala Lumpur, Yeah Kim Leng, a senior economist with financial research firm RAM Holdings, said he expected Asian market reaction to S&P's move to be "muted" as the downgrade had already been priced in.

"Of course globally there is greater uncertainty now... There will be some investors who follow a 'triple A' credit rating who need to sell-off... So the market will see some adjustments," Yeah told AFP.

He said he expected Asian countries to hold on to their US dollar reserves amid "few available alternatives", describing Asia as a "relative sea of stability" compared to the volatile European and US markets.

The Philippines said the downgrade would serve as a "wake-up call" but it was confident the world's largest economy could address its problems.

- AFP/cc

[evergreen]

Russian Prime Minister Vladimir Putin accused the United States Monday of living beyond its means "like a parasite" on the global economy and said dollar dominance was a threat to the financial markets.
"They are living beyond their means and shifting a part of the weight of their problems to the world economy," Putin told the pro-Kremlin youth group Nashi while touring its lakeside summer camp some five hours drive north of Moscow. "They are living like parasites off the global economy and their monopoly of the dollar."

Read full article

[evergreen]

downgrade has been fully priced in

So did you buy over the last 2 days or plan to buy on Monday?

silverefforts wrote:I just chat with someone online and it came to my mind that the thing that is going to affect us most is the possibility of higher SOR rate due to the US downgrade.

In recent years, financially-savvy singaporeans have taken up mortgage loans pegged to SOR instead of mainstream SIBOR due to the weak USD and low US rates. Sometimes, SOR was like 1/2 of SIBOR.

Rightfully, if US borrowing costs go up, SOR could be repriced higher.

good point.

If SOR goes up, SIBOR will go up too but lag a little.

What is your take on interest rate? Will the downgrade cause it to spike??

I don't think interest rate will "spike". But I believe it will increase gradually even if there was no downgrade of credit rating because of the higher bank reserve ratio requirement in the coming years.

[land118]

http://www.businessinsider.com/buffe...#ixzz1UFak13sq

BUFFETT: "In Omaha The US Is Still Triple A

America's most trusted investor, Warren Buffett roundly dismissed the S&P downgrade in comments to Fox Business.
"I don't get it. In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."
Berkshire's exposure to treasuries is significant, but he says he doesn't plan to sell. Buffett sounded no alarm bells about the downgrade, going so far as to say it wouldn't have much effect on the markets Monday.

......

[land118]

Singapore Government Securities is one of 10 AAA rated bond alternatives should there be some switch from US bonds..., imagine if a small % switch here,..

Watch for USD:SGD exchange rate, SGD will get stronger against the dollar...

10 AAA-Rated Treasury Bond Alternatives

http://www.thestreet.com/story/11207...ernatives.html

[DC33_2008]

I am really glad that I have not invested in what some insurance company call them as Universal Life for wealth preservation. Not sure what will become of US$ when pass on to my grandchildren. It may not have much after converting to SGD.

Singapore Government Securities is one of 10 AAA rated bond alternatives should there be some switch from US bonds..., imagine if a small % switch here,..

Watch for USD:SGD exchange rate, SGD will get stronger against the dollar...

10 AAA-Rated Treasury Bond Alternatives

http://www.thestreet.com/story/11207...ernatives.html

[supermax]

Singapore Government Securities is one of 10 AAA rated bond alternatives should there be some switch from US bonds..., imagine if a small % switch here,..

Watch for USD:SGD exchange rate, SGD will get stronger against the dollar...

10 AAA-Rated Treasury Bond Alternatives

http://www.thestreet.com/story/11207...ernatives.html

Bro, what do you think aboutSGD:AUD?

[land118]

Bro, what do you think aboutSGD:AUD?

Bro, am not a forex expert to comment on this. Best for you to ask your banker for some advice.

[amk]

I am really glad that I have not invested in what some insurance company call them as Universal Life for wealth preservation. Not sure what will become of US$ when pass on to my grandchildren. It may not have much after converting to SGD.

Haha same same ! When Citi and AIA gang up and try to sell this thing, they make it sound like such a big deal. Then I told them hey I thought the whole idea of this thing was to get past the estate duty / inheritance tax , but if SG doesn't have any, what's the point ? At the same time, I totally dun believe in financial products for real long term returns. My Asian traditional way is simple, leave property, business, and gold. When real crisis comes, one gold bar can buy you one life!

[land118]

http://www.cnbc.com/id/44044255

World Leaders Hold Urgent Calls to Discuss Debt Crisis

Published: Saturday, 6 Aug 2011 | 9:03 PM ET Text Size
By: Reuters

Global leaders on Saturday arranged a round of emergency calls to discuss the twin debt crises in Europe and the United States that are causing turmoil in financial markets.

After a week that saw $2.5 trillion wiped off global stock markets, they are under pressure to show political leadership and reassure markets that Western governments have both the will and ability to reduce their huge and growing public debt loads.

French President Nicolas Sarkozy, who chairs the G7/G20 group of leading economies, conferred with Britain's Prime Minister David Cameron ahead of a call planned for this weekend by G7 finance ministers and central bankers.

"They discussed the euro area and the U.S. debt downgrade. Both agreed the importance of working together, monitoring the situation closely and keeping in contact over the coming days," a spokesman for Cameron said.

Standard and Poor's deepened the urgency for action late on Friday by stripping the United States of its top-tier AAA credit rating, a move that over time could ripple through markets worldwide by pushing up borrowing costs and making it more difficult to secure a lasting recovery.

It cited the acrimonious debate in Washington on raising the debt ceiling and near political paralysis over the best way to reduce the its $14.3 trillion debt, which on the current trajectory could climb above 100 percent of U.S. national output this decade.

President Barack Obama called on lawmakers once again on Saturday to set aside partisan politics and work together and to put the nation's fiscal house in order and stimulate the stagnant economy.

But the most immediate concern for financial markets was the debt crisis in the euro zone, where yields on Italian and Spanish debt have soared to 14-year highs on political wrangling and doubts over the vigor of budget cuts.

The European Central Bank was scheduled to hold a rare Sunday conference call. Markets are anxiously looking for the central bank to start buying Italian and Spanish debt on Monday to stabilize prices, a move that has split the EC governing council.

Investors saw the ECB's failure to include Italy and Spain in a relaunch of its bond purchases late last week as a sign of the depth of political divisions over the role of the euro zone currency. German officials want to see stiffer austerity programs in place before the ECB would shoulder more Italian and Spanish debt. The danger is that further pressure on Italian and Spanish bonds could undermine an already damaged European banking system and lock Italy, the world's eighth largest economy, out of the* market.

Italy's Prime Minister Silvio Berlusconi, his government weakened by infighting, ruled out early elections to stem market panic. "This has never been an option," Berlusconi said. Instead he has pledged to bring forward austerity measures and balance the budget by 2013, a year ahead of schedule -- steps the ECB will consider to gauge whether to buy its bonds.

S&P's one-notch downgrade of the U.S. sovereign credit rating to AA-plus, while not totally unexpected, adds another level of uncertainty. Loss of gold-plated status for the world's benchmark interest rate risks pushing up borrowing costs on everything from car loans, mortgages and corporate debt to government bonds worldwide.

"However justified, S&P couldn't have picked a worse time to downgrade the U.S.," said Rabobank in a note to clients.

A senior European diplomatic source said the U.S. downgrade, coupled with Europe's problems, raised the need for international policy coordination. G7 finance ministers and central bankers of the major industrialized nations were to hold talks by telephone on either Saturday or Sunday, the source said. Their deputies from the broader G20 were due to hold a call on Saturday evening, a Brazilian finance ministry source said.

A U.K. official said "senior officials" also would talk late on Saturday. There was no indication of whether a statement would be issued by G7 or G20 policymakers, the usual method by which they lay out policy steps designed to soothe markets or provide them with direction.

Debt Addiction

China, the largest foreign holder of U.S. debt, took the world's economic superpower to task for allowing its fiscal house to get into such disarray. It also revived its calls for a new stable global reserve currency to replace the U.S. dollar, gaining a sympathetic ear in the United Kingdom.

RELATED LINKS
S&P Downgrades US Credit Rating to AA-PlusMoody's Keeps Triple-A, Slaps US With Negative OutlookObama Signs Debt Bill, Urges More Action on EconomyS&P's $2 Trillion Error Didn't Change Rating Cut Decision
"The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone," China's official Xinhua news agency said in a commentary.

Xinhua scorned the United States for a "debt addiction" and "short sighted" political wrangling. China, it said, "has every right now to demand the United States address its structural debt problems and ensure the safety of China's dollar assets."

China and Japan have called for coordinated action to avert a new worldwide financial crisis. India's Finance Minister Pranab Mukherjee told reporters: "There is no need to unnecessarily press the panic button."

Dutch Finance Minister Jan Kees de Jager said: "I am in constant contact with colleagues in other countries and am following the development of the financial markets closely."

Recrimination flew thick and fast among U.S. politicians over its debt downgrade, with each side seeking to blame the other for the impasse over how to solve the fiscal crisis.

Senator Jim Demint, a Republican, said Obama should demand the resignation of Treasury Secretary Timothy Geithner.

In contrast, French Finance Minister Francois Baroin said France had faith in the United States to get out of this "difficult period." Friday's U.S. unemployment numbers were better than expected and so things were heading in the right direction, he said.

"One should not dramatize, one needs to remain cool-headed, one should look at the fundamentals," he told France's iTele.

"There is no need for panic," Polish Prime Minister Donald Tusk said. "We will see in August, and maybe more intensively in September what the effects for the world economy will be."

Copyright 2011 Thomson Reuters

[kingkong1984]

2.5 trillion wipe out....

China damm pissed... New stable currency.... Sing dollar?

Hahaha....

[DC33_2008]

Even prudential and hsbc sell them too. Still believe in property as one of the means of wealth creation if you look at the top 5 richest person in Singapore. This becomes more apparent if you track the trend for the last 50 years.

Haha same same ! When Citi and AIA gang up and try to sell this thing, they make it sound like such a big deal. Then I told them hey I thought the whole idea of this thing was to get past the estate duty / inheritance tax , but if SG doesn't have any, what's the point ? At the same time, I totally dun believe in financial products for real long term returns. My Asian traditional way is simple, leave property, business, and gold. When real crisis comes, one gold bar can buy you one life!

[Jadey]

http://www.businessinsider.com/buffe...#ixzz1UFak13sq

BUFFETT: "In Omaha The US Is Still Triple A

America's most trusted investor, Warren Buffett roundly dismissed the S&P downgrade in comments to Fox Business.
"I don't get it. In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."
Berkshire's exposure to treasuries is significant, but he says he doesn't plan to sell. Buffett sounded no alarm bells about the downgrade, going so far as to say it wouldn't have much effect on the markets Monday.

......

with so much money invested in UST. I dont expect him to say otherwise.

[kane]

http://www.businessinsider.com/buffe...#ixzz1UFak13sq

BUFFETT: "In Omaha The US Is Still Triple A

America's most trusted investor, Warren Buffett roundly dismissed the S&P downgrade in comments to Fox Business.
"I don't get it. In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."
Berkshire's exposure to treasuries is significant, but he says he doesn't plan to sell. Buffett sounded no alarm bells about the downgrade, going so far as to say it wouldn't have much effect on the markets Monday.

......

to the old man, he may be smart, but how can he give someone who habitually lives beyond his/her means a AAA or AAAA rating?

[land118]

http://www.bloomberg.com/news/2011-0...reasuries.html

Asia, Europe to ‘Stick It Out’ With Treasuries

Asian states are likely to retain their U.S. Treasury holdings for now and European governments expressed confidence in the world’s largest economy after Standard & Poor’s cut the U.S.’s sovereign credit rating to AA+.

......

[ysyap]

http://www.bloomberg.com/news/2011-0...reasuries.html

Asia, Europe to ‘Stick It Out’ With Treasuries

Asian states are likely to retain their U.S. Treasury holdings for now and European governments expressed confidence in the world’s largest economy after Standard & Poor’s cut the U.S.’s sovereign credit rating to AA+.

......

What other options do they have now?

[land118]

What other options do they have now?

Guess probably clueless for now., start to scratch their heads now...., already stuck....

[land118]

Bro, what do you think aboutSGD:AUD?

Not sure if u are vested in AUD, but commodities currencies are on the decline against the greenback...


Aussie dollar falls below greenback parity
Posted: 09 August 2011 1106 hrs


SYDNEY: The commodities-linked Australian dollar Tuesday slumped below parity with the greenback for the first time since March, when it was rocked by the Japan earthquake.

The "Aussie" sank under US$1.00 shortly after noon Tuesday and was as low as 99.30 US cents by 12.20pm (0220 GMT), amid carnage on regional markets linked to the US debt downgrade by Standard & Poor's on Friday.

Since breaching parity with the greenback in October the Aussie has rallied consistently near or above the US$1.00 mark, retreating only briefly in the immediate aftermath of Japan's quake and nuclear crisis.

It hit a record of US$1.1081 just two weeks ago.

The unit has plunged 4.1 percent in local trade since Monday's close, and was tipped below parity by a 6.5 percent surge in Chinese inflation to its highest level in three years on soaring food costs.

China is Australia's major trading partner and the soaring inflation's potential to trigger social unrest and economic instability is likely to rattle policymakers and investors.

The Aussie is a risk-based currency and Bank of New Zealand currency strategist Mike Burrowes said it was hit badly by the global panic.

"We're seeing the safe-havens, like the US dollar, the Swiss franc and the Japanese yen all appreciate," Burrowes said.

"These risk aversion fears and concerns around the US debt downgrade are really underlying that -- concerns around global growth and a potential for global growth to slow in Asia."

Australia's central bank took the unusual step of commenting on financial markets Tuesday amid the steep falls in both the dollar and the stock market.

"The Reserve Bank is monitoring market developments closely with no strains evident in the money markets," a spokeswoman for the bank said.

"The Reserve Bank's market operations continue to be conducted as usual."

- AFP/cc

[land118]

Highly volatile, DJ from negative 200 to positive 100 ...300points swing..., more changes likely before Mkt open...

http://www.cnbc.com/id/17689937/site/14081545/

[kingkong1984]

to the old man, he may be smart, but how can he give someone who habitually lives beyond his/her means a AAA or AAAA rating?

Vested lor....

White lie....

[land118]

http://www.cnbc.com/id/44068602

Tuesday Look Ahead: Little Hope Fed Will Find Way to Soothe Markets

The Federal Open Market Committee holds its regularly scheduled meeting Tuesday and is not expected to announce any major policy initiatives, at the conclusion of the meeting. The decline in financial markets is viewed as too fresh for the Fed to react to in any major way, but it may comment about financial conditions and the economy.

"They've got a very cluttered balance sheet. The Fed doesn't have a lot of room, but I believe in this environment he (Fed chairman Ben Bernanke) has to say something. People don't feel inspired. There's a leadership vacuum," said Art Cashin, director of floor operations at UBS. "I think the problem is after what we saw last week (in Washington ) there's a growing fear here that if a great crisis erupted, geopolitical or otherwise, that these guys can't work together to get things done."

Whether global markets can stabilize Tuesday is the big question, as the selling cycle continued in early Asian trading and hotter than expected Chinese inflation data hurt sentiment. Traders described Monday's sharp 6 percent Wall Street decline as a high-volume downdraft, with no buyers in sight.


Confidence skidded along with stocks. Hedge funds and other major investors unloaded shares across the board, and the hardest hit were the financials, positioned at the very heart of the markets and the soft spot of the economy. The S&P financial sector declined nearly 10 percent. Worst hit was Bank of America, off 20 percent on fears it needs to raise capital.

The Dow plunged 634 points or 5.6 percent to 10,809, its worst day since the depths of the financial crisis in December, 2008. The S&P 500 lost 6.66 percent to 1119, a point below a key support level.

"That's the eerie part of it. You can't see any appreciable rallies. There's not a rush of bargain hunting. It's just eerie. It was unrelenting," said Cashin.

Treasurys Monday saw a flight to safety as investors fled risk markets. Oil, for instance, lost 6.4 percent to $81.31 and was falling into the upper $70s in late trading. Meanwhile, investors snapped up gold, driving the metal $61 higher to $1,710.20 per ounce.

Besides the Fed meeting Tuesday, there is productivity and costs data at 8:30 a.m. The NFIB small business survey is released at 7:30 a.m.

A test for the markets will be three Treasury auctions this week. Tuesday's 1 p.m. auction is for $32 billion 3-year notes.

Standard and Poor's downgrade of the U.S. credit rating was a catalyst behind Monday's selling. Another factor is skepticism about Europe's ability to halt the spread of contagion to its banking system. However, the European Central Bank was able to add some stability to debt markets by buying Italian and Spanish bonds Monday. The other big fear for markets is that the U.S. economy is not strong enough to stave off a new recession.

What's the Fed to Do

Economists have speculated the Fed could reaffirm Tuesday that it will hold rates low for an extended time, and also now vow to keep its balance sheet bloated at nearly $3 trillion for a long time. There has been some talk the Fed could shift to buying longer-dated Treasurys when it replaces the mortgages that roll off in its portfolio in an effort to keep rates down.


RELATED LINKS
Pressure on Fed Grows
No Quick Cure For Growth
China Economists See Big Risks From US Downgrade
But it is not likely the Fed will embark any time soon on another quantitative easing program.* The last QE program expired at the end of June, when the Fed wound down its purchases of $600 billion in Treasury securities.

"Not only is the economy deteriorating, not only are a lot of people pricing in a recession, but there is very little that people expect the fiscal and monetary authorities to do, if that indeed is the case. There's a real risk if we go into recession that the Fed doesn't have any more bullets," said Dan Greenhaus, chief global strategist at BTIG.

Amitabh Arora, head of asset allocation research at Citigroup, said the Fed will acknowledge market conditions in its 2:15 p.m. statement. "I think tomorrow it will be an assurance that they are monitoring things," he said.

Arora said it appears the markets are troubled by twin concerns, particularly when you look at the financial sector. "I think that people are concerned about the financing markets and they are concerned there will be a forced deleveraging of the banking system because of the financing market. We have not seen any stress in the financing markets, yet," he said.

The other concern is that the economy is slowing. "Whether we see a snap back depends on why we sold off on. If it's a growth reassessment, its not going to snap back quickly," if the economy is deteriorating, he said.* "If it's a concern about the financing markets, and there's not a problem after three or four weeks, it will snap back quickly, and I think it's the latter."

However, Arora points out that when growth slows in one quarter, it often stays slow in the next quarter. "Sharp declines in equities prices usually go hand-in-hand with subsequent declines in growth rates, not necessarily recession, but growth rates. Our growth index suggests growth was 0.5 to 1 percent for June and July. That's not a forecast. That's what the real time data suggests," he said.

He also said the markets appear to be reacting to some fear that there are medium term consequence of the single-notch downgrade of the U.S. AAA rating that are as yet unknown. "Everything we've looked at suggests there should be no medium-term consequences except in a couple of areas, like student loans which are backed by the U.S. government," he said.

[land118]

In anticipation of FED meeting, not sure if Dow can sustain....

http://www.cnbc.com/id/44073098

Dow Jumps 200, Led by BofA; Vix Plunges
Published: Tuesday, 9 Aug 2011 | 10:07 AM ET Text Size
By: JeeYeon Park
CNBC.com Writer

Stocks extended their rally Tuesday, coming back from the previous session's steep nosedive as investors looked ahead to the Federal Reserve's statement later this afternoon.

[land118]

STI shld also chiong later..., saved by National Day

http://www.cnbc.com/id/44073098

Stocks End Sharply Higher, Dow Surges 400

Published: Tuesday, 9 Aug 2011 | 4:23 PM ET Text Size
By: JeeYeon Park
CNBC.com Writer

Stocks saw its biggest one-day gain since May 2010 Tuesday after a wild market session as investors snapped up beaten-down stocks and following a Fed statement to keep interest rates near zero for at least two more years