Stocks surge

Bloomberg reports Wednesday's market action:

Stocks rose, rebounding from a four- day global slump that drove valuations to the lowest level since 2009, amid speculation President Barack Obama’s plan for more than $300 billion in economic stimulus will boost growth. Treasuries, German bunds and gold fell as the dollar snapped a six-day rally.

The MSCI All-Country World Index surged 2.8 percent and the Standard & Poor’s 500 Index jumped 2.9 percent at 4 p.m. in New York. The 10-year Treasury yield added six basis points to 2.04 percent after reaching a record low yesterday, and Germany’s yield climbed six basis points to 1.91 percent. The dollar weakened against the euro after legal challenges to Germany’s role in the region’s rescue funds were rejected by the nation’s top court. Gold dropped the most in two weeks and copper advanced above $9,000 a metric ton in London.

Economic reports on Wednesday had been mixed.

The Federal Reserve's Beige Book survey showed that the US economy grew at a slower pace in some regions.

In Japan, the index of coincident economic indicators fell 0.3 point in July but the index of leading economic indicators rose 2.7 points.

In Germany, industrial production jumped 4.0 percent in July but a report on Tuesday had shown that factory orders fell 2.8 percent that month.

In the UK, industrial production shrank 0.2 percent in July due to a big drop in oil and gas extraction but manufacturing production rose 0.1 percent.

In Australia, the economy rebounded strongly in the second quarter, growing 1.2 percent after contracting 0.9 percent in the first quarter.

In central banking news, the Bank of Japan and the Bank of Canada left interest rates unchanged on Wednesday.