Stocks rose Thursday after a broad rally in Europe, some Asian central banks to join the U.S. Federal Reserve to lower official interest rates.
In early European trading, the euro zone Dow Jones Stoxx 50 Index, a barometer of blue-chip stocks in the euro zone rose 1.9 percent, while the FTSE 100 index in London rose 0.7 percent. The CAC 40 index in Paris was 1.6 percent, and Frankfurt DAX index was up 2.4 percent.
Deutsche Bank rose 2.3 percent, than the market expected the report to 574 million U.S. dollars, profit for the third quarter, rather than loss of investor expectations. Germany’s banks are able to use the new accounting rules relaxed so as to avoid booking in mind greatly reduced.
The Hang Seng Index in Hong Kong leading the Asian rebound, closing up 12.8 percent and the composite index in Seoul also soared 12 percent.
In Tokyo, the Nikkei 225 index rose 10 percent, to it on a three-day rise by about 25 percentage points, speculated that the Bank of Japan will cut its main interest rates at its policy meeting the goal last Friday. Prime Minister Taro Aso is also expected to announce a package to stimulate the economy the value of 50 billion U.S. dollars.
The benchmark S & P / ASX 200 index ended the day in Sydney four per cent higher.
Index futures trading in the United States recommends that Wall Street will be opening up to three per cent.
Asian stock markets by the news that the South Korean government has set up a 300 billion dollar currency swap with the Fed expected the measures to alleviate the pressure on local bank loans must be repaid foreign debt.
The Central Bank in Hong Kong and Taiwan after the U.S. Federal Reserve decided to cut overnight interest rates by 0.5 percentage points. The Hong Kong Monetary Authority to relax the benchmark interest rate equal to 1.5 percent, Taiwan will be its key interest rate a quarter percentage point to 3 percent - the third to cut about a month. In the Fed’s decision, China’s central bank to bank raised benchmark deposit and lending rates 0.27 percentage points, the third reduction in six weeks.
Norway Wednesday the central bank also cut its main interest rate by 0.5 percentage points to 4.75 percent. European Central Bank and Bank of England are expected to ease policy next week, as well.
The Fed lowered the federal funds rate - the interest banks lend money to each other overnight - to one per cent, to reach the last record low in 2003 and 2004, when the Federal Reserve to try to encourage economic recovery after the burst The Internet bubble. However, the federal funds market of about 0.125 percent, the central bank to continue into the cash market.
The Federal Reserve’s move is not enough to eliminate the concern of financial markets, the United States - and global - economy is in dire straits, as well as the U.S. stock market, the short-term rebound after the rate cut was announced, or at the last minute deal, Standard S & P 500 index closed down 1.1 percent.
Another worrying sign is that the improvement in credit market confidence seems to have come to a halt. After a significant improvement in the last week of the so-called Ted spread - the gap between the yield of 3 months of U.S. government bonds and interest rates, banks charge each other for the same period of the loan - has been stagnant at about 2.84 percentage points higher than the level of The normal range of 0.5-1.0 points.
In a research report Thursday, Alex Patelis, economist at Merrill Lynch in London warned that “a terrible impact on the economic data in the corner, because in September / October data.” Patelis President The global economy is expected to grow by 2.1 percent in 2009, in 2001, its lowest level since.
U.S. crude oil futures for December delivery rose 2.02 U.S. dollars to 69.52 a barrel.
U.S. dollar against major European currencies, it rose to 98.72 yen from 97.32 late Wednesday in New York. The euro 1.3216 U.S. dollars against 1.2960 dollars, while the pound moved to 1.6638 U.S. dollars from 1.6372 U.S. dollars. Dollar fell to 1.1276 Swiss francs 1.1307 francs.
At the same time, the company’s performance in Asia and elsewhere are continuing to portray a bleak.
Mitsubishi Motors Corp. Thursday the ranks of the giant enterprises in order to reduce its full year profit expectations, while the economic data over the next few weeks and days spotlight will be a serious economic recession and the possibility of pent-up emotions.
In a research report Thursday, Alex Patelis, economist at Merrill Lynch in London warned that “a terrible impact on the economic data in the corner, because in September / October data.” Patelis President The global economy is expected to grow by 2.1 percent in 2009, in 2001, its lowest level since.
