Markets Up as U.S. Rebounds

Russian markets rose Tuesday as their U.S. counterparts rebounded strongly on positive results from two major banks and the expectation of the Federal Reserve slashing interest rates.

The MICEX Index rose the most in a week, gaining 1.6 percent to 1,607.84, as all but seven of the index's 30 stocks advanced. The benchmark dollar-denominated RTS Index added 1.4 percent to 2,018.76.

At 2:15 p.m. in New York, The Fed cut its main lending rate by three-quarters of a percentage point to 2.25 percent.

U.S. stocks posted their biggest gain in a week, erasing most of a two-day sell-off that wiped out $767 billion, after earnings Tuesday at Lehman Brothers and Goldman Sachs beat estimates.

Lehman, the fourth-biggest securities firm, had its steepest advance ever. Goldman, the largest securities firm, rallied the most in more than seven years.

In Moscow, MMK rose 4.1 percent to 30.092 rubles, the biggest gain in the MICEX Index.

Novatek, the country's second-biggest natural gas producer, climbed 1 percent to $78.10 in London, its first gain in four days.

Sberbank added 2.9 percent to 74.59 rubles, rebounding from a 15-month low.

Severstal fell 1.2 percent to 584.64 rubles, after losing 6.4 percent Monday.

Merrill Lynch cut its price estimate on Severstal's shares to $34.31 (807 rubles) from $36.45, saying higher costs hurt profitability in the fourth quarter.