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Stocks rebound from rout as Fed faces calls to cut rates early

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Most equities rallied Tuesday after the previous day's global rout fueled by U.S. recession fears that have led to calls for the Federal Reserve Board to cut interest rates before its next meeting.

Most equities rallied Tuesday after the previous day's global rout fueled by U.S. recession fears that have led to calls for the Federal Reserve Board to cut interest rates before its next meeting. Tokyo, which suffered a record loss Monday, led the gains, soaring more than 10 percent as traders bought beaten-down stocks caught up in Monday's very bad day.London edged up after shedding around two percent Monday, while Paris and Frankfurt were also higher.U.S.

Commentators also said a stronger yen had led investors to unwind their 'carry trades' in which they borrowed in the cheap Japanese currency to invest in higher-yielding assets, such as equities. While Wall Street's three main indexes suffered another day of pain -- with the Nasdaq down more than three percent -- a forecast-beating read on the key U.S. services sector provided some solace.

 

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