Stock Markets Continue Improved Trading

By Stewart Douglas

Markets across the world have again enjoyed a day of positive trading, after yesterday’s much anticipated interest rate cut at the Federal Reserve brought some much needed stability back to world markets.

The move comes amidst fears of the extent of the sub-prime situation, and the wider economic effects of tightening liquidity conditions on economies across the world, much of which have been calmed as a result of the Federal Reserve’s move.

The Dow Jones saw positive trading as a result of continued momentum from trade yesterday on top of a fall in overall inflation figures over the month.  As a result, trade took the exchange to 13815.6, up 76.17 points on the day.

Meanwhile the NASDAQ exchange was up by 14.82 points to 2666.5, with the S&P 500 enjoying smaller gains of 9.25 points on the day.

The FTSE 100 was heavily up halfway through the day’s trade at over 238 points up on the morning after positive news from UK companies on top of ongoing momentum from trading yesterday.

However, after an apparent U-turn on policy by the Bank of England led many analysts to expect undue government influence, trading slipped back on the day despite its otherwise highly impressive finish of 6460.0 up 176.70 points.

On the continent, the German DAX exchange in Frankfurt enjoyed similar gains to the FTSE, up a proportionately lower 175.63 points on the day to close at 7750.8.

Its French counterpart, the CAC 40 exchange enjoyed what was clearly the day’s best trading figures, rising as it did 181.47 points up to 5730.8.

Analysts have forecast that tomorrow could see some more growth in stock indexes as investors return to confident climes.  However, it is warned that markets remain fragile, and anything indicative of a furtherance in the sub-prime saga could send markets plunging into familiar red territory.