Stocks Rally After Central Banks Add Liquidity

U.S. stocks are showing strength Monday morning following encouraging news from Europe's Central Bank.

The European Central Bank announced the addition of $65 billion to the credit markets on Monday after injecting over $135 billion on Friday. The ECB started the worldwide trend last Thursday, as the bank saw liquidity within the credit market hit crisis levels. The ECB also announced that it now views the market as normalized, reassureing nervous investors worldwide.

Monday, mortgage lender Accredited Home Lenders Holding Co. (LEND | Quote | Chart | News | PowerRating) revealed it has filed a lawsuit against Lone Star Fund V, L.P. and two of its affiliates seeking the private equity firm to close its tender offer for Accredited shares and complete the $400 million acquisition. (full story). LEND shares fell 32%.

Crude oil futures for September delivery added 2.1% to $72.98 a barrel on speculation that the injection of money into credit markets may prevent economic slowdown, thus adding to fuel demand. Gold futures for December delivery fell 0.1% to $681.20 an ounce on dollar strength.

Around Asia, Shanghai's Composite rallied 1.5% to 4,820.06, Hong Kong's Hang Seng index added 0.5% to 21,891.10, and Tokyo's Nikkei rose 0.2% to 16,800.05.

Join TradingMarkets Director of Education, Steve Primo, as he teaches a number of quantitative strategies that can potentially give you an edge in your trading.

Sign up now for one of our free training classes and start learning how to become a better trader.

Darren Wong
Associate Editor
darrenw@tradingmarkets.com

TradingMarkets subscribers have access to 16 quantitative stock indicators and another 17 quantitative market bias indicators. These indicators are derived from our proprietary database that includes millions of trades, and designed to give you a short-term trading edge.

Each day, we provide free open access to one of these proprietary stock indicators. If you would like to access all 16 stock indicators, 17 market bias indicators, along with many other tools, click here for a free 7-day TradingMarkets trial.