U.S. stock futures moved sharply higher Friday following the announcement of government plans to shore up money market funds and a clamp down on abusive short selling.

S&P 500 futures jumped 45.80 points. Dow Jones industrial average futures climbed 320 points and Nasdaq 100 futures leaped 53.25 points.

Overseas indices were sharply higher the U.S. Securities and Exchange Commission and the British Financial Services Authority banned short-selling of financial stocks.

The U.S. Federal Reserve Board this morning announced two enhancements to its programs to provide liquidity to markets. “One initiative will extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance their purchases of high-quality asset-backed commercial paper (ABCP) from money market mutual funds. This should assist money funds that hold such paper in meeting demands for redemptions by investors and foster liquidity in the ABCP markets and broader money markets,” the Fed said in a release.

Also the U.S. Treasury Department announced it will provide up to US$50 billion to support money market funds which have been under pressure as global turmoil created severe liquidity strains.

In commodity news, gold slumped today after big gains earlier in the week. The near-month bullion contract was down US$50.70 to US$846.30 on the New York Mercantile Exchange.

Crude oil rose above US$100 a barrel, going as high as US$100.76 before easing back to US$99.49, up US$1.61.

The Canadian dollar opened at US93.82¢, down 0.36 of cent.

European bourses surged Friday, the UK’s FTSE 100 index was up 385.3 points to 5,265.30, while Germany’s DAX index rose 4.2% and the Paris CAC-40 advanced 6.4%.

In Asia, Hong Kong’s Hang Seng index soared 9.6% to 19,327.73, and Japan’s Nikkei 225 average rose 3.8% to 11,920.86.

It was a rollercoaster ride for Toronto equities on Thursday, with major gains early in the day that were largely wiped out by early afternoon, then back up at day’s end.

The S&P/TSX composite index closed up 186.9 points, or 1.6%, at 12,064.57, its first increase in four days.

News that central banks would pour $247 billion into the global financial sector helped push financial shares up 5.7% in Toronto, making up for Wednesday’s losses.


The junior S&P/TSX Venture composite index rose eight points, or 0.6%, to close at 1,477.88.

In New York, a gain of 410.03 on the Dow Jones industrial average reclaimed roughly 90% of yesterday’s 449.36-point drop. It closed at 11,019.69.

The S&P 500 gained 50.01 points to finish at 1,206.4, while the tech-heavy Nasdaq composite index added 100.25 points to close at 2,199.

IE