European and Asian markets rose today, in anticipation of a plan President Bush is expected to announce to bail out subprime lenders. Bush is expected to allow the FHA to guarantee loans for delinquent borrowers, allowing them to avoid foreclosure. "The news on Bush is going to be positive. It will hopefully help keep consumer confidence intact," says a London asset manager.
The Dow Jones Stoxxx 600 was up 1%; the Nikkei and Taiwan benchmark each added about 2.5%, partly on good news from the US tech sector. S&P futures were up 1%, as traders also expect Bush to back tax breaks for homeowners to refinance, and investors wait on a speech from Fed Chairman Ben Bernanke, who may tip his hand about a rate cut.