Markets stabilize after rout, as Wall St. and Shanghai rebound

NEW YORK, Feb 28, 2007 (AFP) – Global stock markets steadied Wednesday a day after the worst slide in years as Wall Street nerves were calmed by Fed chairman Ben Bernanke and Shanghai clawed back some of its massive losses. Latin American markets meanwhile rebounded on Wall Street’s coattails. Brazil’s Bovespa index shot up 1.73 percent, while the Mexican Bolsa index rose 0.83 percent and Argentina’s Merval index added 0.72 percent. Some European and Asian bourses however struggled for a second day as shock waves from Tuesday’s market rout continued.

In New York, the leading Dow Jones Industrial Average rebounded 52.39 points, or 0.43 percent, to close at 12,268.63, coming off the worst single-day point decline since the aftermath of the September 11, 2001 attacks.

The broad-market Standard and Poor’s 500 index rose 0.56 percent to 1,406.82 and the tech-dominated Nasdaq advanced 0.34 percent to 2,416.13.

Bernanke told US lawmakers that his economic outlook is unchanged and that financial markets are functioning “well” and “normally.”

He said there was no “single trigger” for the market correction, but said he still sees a possible pickup in the US economy later this year.

“Bernanke seemed to reassur