Global Stock Markets Strongly Up

The world stock markets have enjoyed a comprehensive day of positive trading, mainly as a result of the dramatic interest rate cut announced by the Federal Reserve, and the anticipation of the same earlier in the day.

The Federal Reserve today announced that the US interest rates were to be cut by a significant two increments, taking it down to 4.75% in a bid to stabilise markets across the globe.

After months of unrest resulting from the sub-prime fallout, markets were overwhelmingly positive off the back of the news, which could ultimately lead to more longer term stability.

The US stock exchanges led the way, naturally, in response to the rate cuts with some of the most significant gains of recent months. The leading Dow Jones exchange was up by an astonishing 308.98 points on the day, taking the index beyond 13712.4. The sister NASDAQ exchange was up by 63.14 points to 2644.8, whilst the S&P 500 was up by 43.23 points to 1519.9.

Markets in Europe also traded very heavily after a recovery in banking shares as liquidity climates improved, whilst the anticipation of the US news also helped to boost share prices across the board.

The FTSE 100 in London was up 100 points at the close of trade, closing at 6283.3, marking a similar trend across other European markets as shares in the finance sector began to improve.

In Germany, the DAX 30 exchange was up by 95.36 points to 7575.2 reflecting an upturn in banking and insurance shares, whilst the French CAC exchange in Paris was up 109.98 points on the day to 5549.4 by close.

The widely anticipated measure has sent trading in markets across Europe, the US and around the world into heavy positive territory over the course of the day, which is likely to provide substantial momentum for the opening of trade tomorrow.

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