Stock Markets On The Up

Stock markets across the world have seen a poisitive day’s trade, after speculation of a Federal Reserve rate cut over the next few weeks.

The news comes after the announcement yesterday in which Ben Bernanke was quoted as having said that he would use ‘all available tools’ to calm market and economic volatility at the Federal Reserve.

After growing unrest in the US home market, particularly with increasing defaults and liquidity problems probing fears of a credit crunch, markets have been thrown into turmoil over the last week, hence the move was welcomed by investors as a step in the right direction.

The FTSE 100 in London was up a robust 109.90 points by the close of trade, settling at 6196.0 at the closing bell. After moderate trade over the course of yesterday, the news comes as a relief to many private pension funds with substantial stock investments.

In Frankfurt, the DAX 30 was up by 75.73 points to a round 7500.5 at the close of play, whilst the CAC 40 in Paris had grown by 99.39 points, settling at 5518.2.

Trading in the US has also been strong over the course of the day, reflecting most severely the announcement made by a key senator yesterday of the Fed’s moves to keep markets under control.

The leading index the Dow Jones was up by 145.27 points to 13236.1, after weeks of sluggish to moderate trade. After last week’s blood red screens, the news comes as great relief to investors and companies worldwide.

Meanwhile the more technology focused NASDAQ exchange was up by a meer 31.50 points on the day, closing as it did at 2552.8. The S&P index of 500 companies was also up by 16.95 points over the course of the day, settling at 1464.1.

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