Frankfurt stocks rally 1.6% to record, partly on hopes for further rate cuts
Frankfurt equities soared 1.6% to a new closing high, partly on hopes for further reductions in interest rates. London stocks slipped as the market groped for direction, despite Britain's plans to reduce government spending.</br></br>Tokyo shares ended mostly lower Tuesday, after surrendering solid intraday gains as arbitragers unloaded equities ahead of a Japanese holiday that will close the market Wednesday. But Hong Kong stocks advanced to another all-time high.</br></br>World-wide, stock prices rose in dollar terms. The Dow Jones World Stock Index was at 113.62, up 0.09, reflecting higher Asia/Pacific markets and lower American and European markets.</br></br>Forest-products stocks were the top gainers in the Dow Jones World Industry Groups, closing at 157.97, up 4.27, or 2.8%, with Louisiana-Pacific of the U.S. posting an 8.1% gain in its local currency. Drug-retailer stocks trailed at 103.81, down 1.29, or 1.2%, with Rite Aid of the U.S. sliding 1.6% in local currency.</br></br>In Frankfurt, the DAX 30-stock index surged 33.46 points to 2095.58. The index opened at its intraday low of 2071.84 and rose to a trading high of 2097.83 before retreating slightly. All of the DAX shares advanced.