Oil jumped more than 7 percent percent on Wednesday as the dollar fell after the Federal Reserve cut US interest rates. European and Asian stock markets ended higher while US stocks gyrated in highly volatile trade after the rate cut, amid signs the myriad central bank and government efforts to shore up credit markets were starting to work. US crude rose $4.77, or 7.6 percent, at $67.50 a barrel, then rose further to hit $68.28 in post-settlement trade. London Brent crude settled up $5.18 a barrel at $65.47. However, US stocks closed mostly lower Wednesday in choppy trade despite a Federal Reserve half-point interest rate cut to help ease a credit squeeze and stimulate the sluggish economy. The Dow Jones Industrial Average fell 77.26 points (0.85 percent) to finish at 8,987.86, while the Nasdaq rose 7.74 points (0.47 percent) to 1,657.21. The broad-market Standard & Poor's 500 index retreated 10.42 points (1.11 percent) to 930.09. The major indexes swung in and out of positive territory after Tuesday's huge bargain-hunting rally – the Dow gained more than 10 percent – following days of sell-offs. Global stock markets saw some spectacular gains Wednesday, with investors buoyed by prospects for global interest rate cuts to help the world economy resist a slide into recession. Markets in Europe soared, with several jumping 9.0 percent as spirits lifted and recession fears faded. In London, the FTSE 100 index rose 8.05 percent to 4,242.54 while in Paris the CAC gained 9.23 percent to 3,402.57. By contrast, the Frankfurt DAX fell 0.31 percent to 4,808.69, dragged down by Volkswagen. In other markets, Brazil's Ibovespa jumped 4.37 percent and Toronto's S&P/TSX added 3.82 percent. Tokyo shares rocketed 7.74 percent as the expected US rate reduction lifted Asian markets.
