Biggest jump for Wall Street 2012

Published:  7 Jun at 6 PM

Wall Street shares have witnessed their largest daily jump for 2012 on hopes of a big rescue for Spanish banks, as well as a Federal Reserve report suggesting the American economy was getting back on track.

The Dow Jones index finished at 12,415, up 287 points (2.4 percent). European markets also ended higher, as the Paris and London exchanges finished up 2.4 percent. Frankfurt ended 2.1 percent higher.

The European Central Bank’s comments that it was not planning to offer any more stimulus failed to halt the recovery. There has been anxiety over the US economic revival running out of energy after a vital jobs report showed fewer numbers than expected joining the workforce.

But the Fed announced that its Beige Book report of businesses indicated "moderate" growth for April and May. It said that manufacturing continued expanding in most districts, as consumer spending stayed steady or up modestly. New car sales remained robust and inventories of certain popular models were quite tight, said the report.