World Stock Markets Finish Positive

World stock markets have enjoyed a day of recovery in trade, carrying on where they left off earlier in the week with momentum from the Federal Reserve’s interest rate cuts, designed to stabilise the rocky sub-prime sector.

The US sub-prime lending sector crisis had been responsible for a significant upset in world markets over the last few months, leaving investors to choose other more stable markets like gold and oil.

However, the Federal Reserve’s interest rate cuts of earlier in the week should be enough to secure more stability for troubled banks and mortgage lenders, which has helped investors regain their confidence in the markets.

The Dow Jones rounded off a strong week, up 69.18 points to 13835.9. After a blip in trade yesterday to coincide with the Federal Reserve’s prediction that the extent of sub-prime losses would surpass pessimistic forecasts, the Dow Jones has continued the upwards momentum it found earlier in the week to close green.

Meanwhile the sister NASDAQ exchange was also up by 18.56 points to close the week at 2672.9, and the S&P 500 gained 8.53 points to close 1527.3.

European markets also enjoyed positive trading over the course of the day wiping out much of the losses sustained through trade yesterday, following on from the losses in the US markets earlier in the day.

The German Dax exchange was amongst the day’s heaviest winners, up 59.34 points to 7794.4 by the close. The CAC 40 in Paris was also up on the day, gaining 11.89 points to 5700.7.

In London, the FTSE 100 also enjoyed green trade, gaining 27.70 points on the day to hit 6456.7 by the closing bell. Whilst analysts are hoping that the positive trade and market stability will continue, many are reserving judgement on the direction of opening trade Monday.

Story link: World Stock Markets Finish Positive