By the United States two major bond insurers, "relegation" encouraged by the success of the news, the U.S. stock market closed on the 25th all rose, the Dow rose nearly 190 points a month since the biggest one-day gain. Most of the stock market yesterday, the Asia-Pacific higher, while the European stock market was generally rising more than 1%.
The Standard & Poor's announced that ratings remain unchanged
With the three major U.S. rating agencies of the country's two largest bond insurer MBIA and Ambac's credit rating assessment deadline approaching, investors on the underwriting of the more than 2 trillion U.S. dollars U.S. dollar assets of the industry is also growing concern. It is estimated that once the two companies the highest AAA rating does not guarantee, the banks are likely to lead to further Provision 70 billion U.S. dollars loss of assets, while trillions of dollars of municipal bonds will also be seriously diminished.
However, Standard & Poor's statement on the 25th of many market participants to set the heart. The Standard & Poor's announced that the temporary maintenance of MBIA and Ambac, the highest rating. According to the statement, the nation's largest bond insurer MBIA from the Standard & Poor's downgraded deleted from the list of observation, on behalf of the company's AAA rating lose the possibility of very small. However, the second-ranked Ambac remain on the watch list.
In order to force-not to be downgraded, the two companies have in the recent positive efforts. MBIA in on the 25th that will be suspended underwriting asset-backed securities for six months, while intended to municipal bonds and asset-backed securities from the insurance business, and not with the quarterly dividend. In order to prove to the Moody's and Standard & Poor's strength may retain a AAA rating, Ambac, is seeking to obtain bank consortium 3 billion U.S. dollars capital injection.
It should be noted that, Standard & Poor's on the 25th of the statement also pointed out that, MBIA look at the prospect of still worse, means that the future may cut its rating. In addition to the S & P, Moody's rating of MBIA and Ambac of the review is still going on. Another giant Fitch ratings last month, has cut its insurance subsidiary of Ambac's rating to AA, and consider that the rating downgrade MBIA.
U.S. stocks rose celebrate the "relegation"
To stimulate the relegation news, MBIA and Ambac's shares the same day in the S & P 500 Index constituent stocks in the lead, and lead the banking and insurance stocks fell by up to promote the Dow closed up 190 points, creating the largest increases this month.
Analysts pointed out that as long as the highest AAA credit rating from being downgraded, the banks do not have accounts on the Provision of these debt-to detract from underwriting securities. The good news greatly eased investors in the bond insurance industry and banking concerns.
On the 25th New York stock market closed, the Dow than the previous trading day up 189.20 points at 12570.22 points, or 1.53 percent, the largest gain since for this month. The Standard & Poor's 500 index rose 18.69 points to close at 1371.80 points, or 1.38 percent. The Nasdaq composite index also rose 24.13 points to close at 2327.48 points, or 1.05 percent.
Lehman Brothers analyst report issued on the 25th: the bond insurer to avoid demotion, the short term to revive the capital market confidence great help. In a statement after the release of the Standard & Poor's, MBIA 25 on the New York market soared 20 percent, to close at 14.58 U.S. dollars. Ambac rose 16 percent, to close at 12.41 U.S. dollars. Driven by this, the S & P 500 financial stocks index closed up 1.2 percent, reversing early trading after falling 1.8 percent up to the situation.
Yesterday, the Asia-Pacific market, major stock markets have also opened higher, most have eventually gained a barrel. One of China, Hong Kong Hang Seng stock index rose 445.61 points to close at 23714.75 points, or 1.92 percent. SYDNEY: Australian shares rose 0.8 percent, Singapore stock market rose 0.42 percent, Indian stocks rose 0.88 percent. However, the day before rose more than 3 percent of Japan's stock market to a technical adjustment, closed fell 0.65 percent.
European stock markets opened higher yesterday also take high. -- As of 21:05 yesterday, the Paris stock market rose 0.66 percent, the London Stock Exchange rose 0.86 percent, the Frankfurt stock market rose 1.04 percent. Prior to the three major stock market gains are more than 1%.
Stocks, financial stocks eye-catching. Europe's second-largest insurer AXA insurance rose 3.3 percent, while the Netherlands International Group rose 2.7 percent.
The Standard & Poor's announced that ratings remain unchanged
With the three major U.S. rating agencies of the country's two largest bond insurer MBIA and Ambac's credit rating assessment deadline approaching, investors on the underwriting of the more than 2 trillion U.S. dollars U.S. dollar assets of the industry is also growing concern. It is estimated that once the two companies the highest AAA rating does not guarantee, the banks are likely to lead to further Provision 70 billion U.S. dollars loss of assets, while trillions of dollars of municipal bonds will also be seriously diminished.
However, Standard & Poor's statement on the 25th of many market participants to set the heart. The Standard & Poor's announced that the temporary maintenance of MBIA and Ambac, the highest rating. According to the statement, the nation's largest bond insurer MBIA from the Standard & Poor's downgraded deleted from the list of observation, on behalf of the company's AAA rating lose the possibility of very small. However, the second-ranked Ambac remain on the watch list.
In order to force-not to be downgraded, the two companies have in the recent positive efforts. MBIA in on the 25th that will be suspended underwriting asset-backed securities for six months, while intended to municipal bonds and asset-backed securities from the insurance business, and not with the quarterly dividend. In order to prove to the Moody's and Standard & Poor's strength may retain a AAA rating, Ambac, is seeking to obtain bank consortium 3 billion U.S. dollars capital injection.
It should be noted that, Standard & Poor's on the 25th of the statement also pointed out that, MBIA look at the prospect of still worse, means that the future may cut its rating. In addition to the S & P, Moody's rating of MBIA and Ambac of the review is still going on. Another giant Fitch ratings last month, has cut its insurance subsidiary of Ambac's rating to AA, and consider that the rating downgrade MBIA.
U.S. stocks rose celebrate the "relegation"
To stimulate the relegation news, MBIA and Ambac's shares the same day in the S & P 500 Index constituent stocks in the lead, and lead the banking and insurance stocks fell by up to promote the Dow closed up 190 points, creating the largest increases this month.
Analysts pointed out that as long as the highest AAA credit rating from being downgraded, the banks do not have accounts on the Provision of these debt-to detract from underwriting securities. The good news greatly eased investors in the bond insurance industry and banking concerns.
On the 25th New York stock market closed, the Dow than the previous trading day up 189.20 points at 12570.22 points, or 1.53 percent, the largest gain since for this month. The Standard & Poor's 500 index rose 18.69 points to close at 1371.80 points, or 1.38 percent. The Nasdaq composite index also rose 24.13 points to close at 2327.48 points, or 1.05 percent.
Lehman Brothers analyst report issued on the 25th: the bond insurer to avoid demotion, the short term to revive the capital market confidence great help. In a statement after the release of the Standard & Poor's, MBIA 25 on the New York market soared 20 percent, to close at 14.58 U.S. dollars. Ambac rose 16 percent, to close at 12.41 U.S. dollars. Driven by this, the S & P 500 financial stocks index closed up 1.2 percent, reversing early trading after falling 1.8 percent up to the situation.
Yesterday, the Asia-Pacific market, major stock markets have also opened higher, most have eventually gained a barrel. One of China, Hong Kong Hang Seng stock index rose 445.61 points to close at 23714.75 points, or 1.92 percent. SYDNEY: Australian shares rose 0.8 percent, Singapore stock market rose 0.42 percent, Indian stocks rose 0.88 percent. However, the day before rose more than 3 percent of Japan's stock market to a technical adjustment, closed fell 0.65 percent.
European stock markets opened higher yesterday also take high. -- As of 21:05 yesterday, the Paris stock market rose 0.66 percent, the London Stock Exchange rose 0.86 percent, the Frankfurt stock market rose 1.04 percent. Prior to the three major stock market gains are more than 1%.
Stocks, financial stocks eye-catching. Europe's second-largest insurer AXA insurance rose 3.3 percent, while the Netherlands International Group rose 2.7 percent.
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