Global stocks rise on stimulus

By Steven C. Johnson

NEW YORK (Reuters) - Global stock markets posted gains on Thursday, hoping that plans to rescue ailing bond insurers and provide tax breaks to consumers would prevent new credit losses and breathe fresh life into the U.S. economy.

Congress and the White House on Thursday agreed on the details of a $150 billion (75.9 billion pound) economic stimulus package. U.S. Speaker of the House of Representatives Nancy Pelosi said it will include tax rebates for up to 117 million U.S. families.

"I think investors are encouraged they came up with an agreement in principle, in quick fashion, and the speaker's remarks were encouraging in that she said it was bipartisan," said Angel Mata, managing director of listed equity trading, Stifel Nicolaus Capital Markets in Baltimore.

"When they started speaking, (the market) picked up momentum ... whether it's momentum or short-covering or value buyers, they're coming in," he said.

A surprise decline in the number of U.S. workers applying for jobless benefits also induced optimism, dulling demand for safe-haven government bonds, though claims of a massive trade fraud at a major bank added to financial worries.

Oil futures rose above $89 a barrel, in tandem with equities' rebound, while the dollar tumbled against the euro.

On Wall Street, the Dow Jones industrial average .DJI was up 108.44 points, or 0.88 percent, at 12,378.61. The Standard & Poor's 500 Index .SPX was up 13.55 points, or 1.01 percent, at 1,352.15.

The Nasdaq Composite Index .IXIC was up 33.32 points, or 1.44 percent, at 2,349.73, boosted by a 10.3 percent rise in Qualcomm Inc (QCOM.O) shares a day after the mobile phone clip maker posted a rise in quarterly profit.