September 18, 2008 / 5:51 PM / 11 years ago

US STOCKS-Market rises after UK short selling action

(Updates to show S&P 500 and Dow up 1 percent)

NEW YORK, Sept 18 (Reuters) - U.S. stocks turned higher on Thursday, with the Dow and the S&P 500 rising 1 percent, after Britain’s Financial Services Authority put a temporary ban on placing bets financial stocks will fall, raising the possibility the United States could take similar measures.

“I don’t think the FSA is independently looking at this,” said Bennett Gaeger, managing director at Stifel Nicolaus in Baltimore. “This could be a cross-border effort, like we have seen with the central banks.” Another analyst also cited the FSA move as a catalyst for U.S. stocks’ move higher.

The FSA is the UK equivalent of the Securities and Exchange Commission.

U.S. stocks had been lower just minutes earlier as renewed anxiety about the outlook for major U.S. financial firms gripped markets.

The Dow Jones industrial average .DJI was up 120.67 points, or 1.14 percent, at 10,730.33. The Standard & Poor's 500 Index .SPX was up 13.86 points, or 1.20 percent, at 1,170.25. The Nasdaq Composite Index .IXIC was up 17.10 points, or 0.81 percent, at 2,115.95. (Reporting by Kristina Cooke and Doris Frankel; Editing by Kenneth Barry)

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