May 10 (Bloomberg) — Stocks rallied around the world, sending the MSCI World Index up the most in 13 months, while Greek, Spanish and Portuguese bonds soared after European policy makers announced an almost $1 trillion loan package to end the region’s sovereign-debt crisis. The euro pared an earlier rally.
The MSCI World Index jumped 4.8 percent at 4 p.m. in New York and the Standard & Poor’s 500 Index rose 4.4 percent, the biggest gain since March 23, 2009, for both. Spain’s IBEX 35 Index surged a record 14 percent. The premium demanded to hold Greek 10-year bonds instead of benchmark German bunds slid by 484 basis points. Oil snapped a four day slump. Gauges of stock- market volatility slid by records while Treasuries, the dollar and gold fell as demand for safer assets decreased. The euro, which topped $1.30 earlier, traded near $1.28.
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