MercoPress. South Atlantic News Agency

World markets soar on Obama's infrastructure plan

United States shares echoed gains in stock markets worldwide on hopes that new stimulus plans in the US and other countries will revive global economic growth. The benchmark Dow Jones index on Monday was up 298 points or 3.5% in afternoon trading in New York, shrugging off Friday's grim unemployment numbers.

In the UK, the FTSE 100 ended up 6.2%, while Germany's Dax added 7.6%, and France's Cac finished up 8.7%. Earlier in the day, stock markets around Asia also raced ahead. The Dow Jones added 261 points to 8,897 by late morning, while the broader S&P 500 and the technology-dominant Nasdaq also gained. "Despite bad US jobs data [announced on Friday], markets are gaining on a sense that they've hit the bottom and expectations for economic stimulus measures being put out by many governments," said Hiroake Osakabe at Chibagin Asset Management. Other analysts were less optimistic that the rally would be sustainable while consumers and businesses were unable to access affordable bank loans. "There's a chance we could be higher for the day, but I'd be very cautious about jumping in with both feet," said Scott Fullman, director of derivative investment strategies with WJB Capital. Investors were cheered by plans outlined by US President-elect Barack Obama over the weekend for the biggest infrastructure investment since the creation of an interstate highway in the 1950s, which would create at least 2.5 million new jobs. Hopes that Congress will soon pass legislation that will save the "big three" Detroit carmakers from collapse also helped to boost global markets. The reversal of sentiment came after a dire session on Friday fuelled by data showing that US employers cut more than half a million jobs in November - the biggest monthly cut in 34 years. BBC business editor Robert Peston said the stock market reaction was "largely emotional". "An extraordinary, frightening responsibility is being placed on Obama," he said. "At a time when most would say that globalisation has undermined the power of most elected politicians, there appears to be a widespread belief that one newly elected leader will have near-magical powers." Separately, South Korea and India also unveiled measures to help firms and boost their economies and there is also talk that the Chinese government will take further action to spur economic growth. The UK's FTSE ended up 251 points to 4,300, while Germany's Dax closed ahead 334 points to 4,716. France's Cac gained 259 points to 3,247. Earlier, Korea's Kospi index ended 7.5% to a near four-week high, while Hong Kong's Hang Seng ended up almost 9%, and Japan's Nikkei added 5.2%. Stock markets in India and mainland China also rose. Mining and construction groups and firms that make machinery were the biggest gainers on hopes that they will benefit from increased investment in infrastructure projects.