US markets surge on eurozone hopes

US markets added to their overnight gains on open this afternoon, following in the footsteps of European markets, which have rallied for the second day running.

The Dow Jones climbed 1.9% to reach 11,255, while the S&P 500 rose 1.9% to reach 1,185 in early trading. Both the Dow Jones and S&P 500 had closed 2% higher after notes from the G20 summit in Washington revealed details of a rescue plan for the eurozone, boosting investor sentiment. Today European markets have rallied as the European Central Bank hinted it will cut interest rates next month. Comments by the ECB governing council members yesterday suggested the central bank will reduce interest rates by 50 basis points at the next meeting on 6 October. The body also said it is co...