Stocks rise worldwide

Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
The MSCI World advanced for an eighth day, led by banks and raw-material producers, the past year’s worst performers. Standard & Poor’s 500 Index futures fell after US stocks closed at a one-month high yesterday as some investors questioned whether the Fed’s efforts will end the economic contraction. European government bonds soared, while US Treasury notes advanced after surging the most in more than four decades yesterday. Copper, oil, wheat and soybeans rallied.
‘We’re unsure if this is a sucker’s rally,’ said Staffan Sevon, chief investment officer at Nordea Asset Management in Helsinki, which has $231 billion. ‘The Fed is doing the right thing. Even though it is probable this will end well and we won’t be living in the forest eating berries, there will be enough nasty surprises to scare the market.’
The MSCI World added 1.6 per cent at 10:09 a.m. in London as UBS AG led a rally in banks, Xstrata Plc advanced with metals, and Hermes International SCA and Prudential Plc climbed on profit that beat analysts’ estimates.

The New Age