After falling by more than 7.5 percent during trading yesterday, a record one day fall for the American stock exchange, the recovery has begun as investors show signs of confidence that the US congress will soon vote in favour of a rescue package for the country’s banks.

At 9.58am local time (11.58pm AEST), the Dow Jones was up 193.06 points (1.86 percent) to 10,558.51 points, falling slightly after having gains of more than 200 points within the first twenty minutes of the trading session.

The NASDAQ and S&P showed similar gains, with the financial indexes up 1.81 and 2.28 percent respectively at the time of publishing.

The 770 point fall on the Dow Jones yesterday was the result of US congress voting against at $700 billion proposal to buy out assets from financial institutions demonstrating financial hardship.

Despite almost two thirds of republicans voting against the bill, US President George W Bush has vowed to find a resolution to the American financial crisis.

The Australian Stock Exchange also took a massive hit today, losing $55 billion in value as the ASX 200 fell 206 points or around 4.5 percent. The average superannuation portfolio was thought to have lost 2 percent of its value in today’s trading alone.

Tags: Australian economy, finance, United States economy