Wall Street snaps back as world trade talks collapse

Share prices snapped back on Wall Street overnight, as traders found their confidence and oil prices approached a three month low.

However Australia suffered a severe blow in Geneva overnight as late hopes of a breakthrough, in the world trade talks, in the seven year long DOHA round collapsed.

That happened when the United States refused to accept safeguards against import surges that China, India and other developing countries had sought.

The Dow Jones industrial index surged 266.48 points to close at 11,397.56.

The S&P 500 also rose strongly, gaining 28.83 points to reach 1,263.20.

And the tech heavy NASDAQ composite index rose 55.4 points to 2,319.62.

Traders were encouraged when steel profits exceeded expectations and the $US strengthened against the Euro.

The $A was trading early today at 95.08 US cents.

But oil futures closed $US down at $US.

Oil futures fell $US2.94 a barrel to $US121.79.

Australia’s trade minister, Simon Crean, was bitterly disappointed at the collapse in the world trade talks.

“It matters in a big way to Australia,” he told the ABC.

“There were significant gains on the cards for Australia out of this round,” Crean said.

“Not just in agriculture, but some important ones in sectors of manufacturing…and important offers in services as well,” he added.

The European Union’s negotiator, Peter Mandelson, described the collapse as “heartbreaking.”

And Mr Crean said it had been “a great disappointment.”