Stock markets in US brightened up and rallied following the decision of the government to help banks by buying stakes and a hope of relief for the global financial situation due to the Federal Reserve’s initiative to pump in dollars. The stock market is coming out of the worst week it has ever faced in the last seventy-five years.
While the 500 index of Standard & Poor saw the highest rise since the year 1987, largest gain in points was seen at the Dow Jones Industrial Average. While automakers in US like Ford Motor Co. and General Motors Corp. saw a 25% rise in their share prices, Bank of America Corp. and Citigroup Inc. rose by 6%. Japan’s financial group Mitsubishi UFJ bailed out Morgan Stanley with an agreement to invest $9 million raising their share price by 76%.
According to Hartford, Connecticut’s chief investment strategist, Quincy Krosby, the important thing is the step and plans they have announced. He went on to say that market is awaits stabilization of the financial system, which is nothing but banks lending funds to enable flow of money.
Signs are positive with the S&P 500 pulling a halt on the losing streak going on for the past eight days. Dow Jones and S&P have had a fall of almost 40 percent from their peak performance in October.
Agreement by Europeans to pump in funds and set right the financial global markets is a positive step according to George Soros, a billionaire investor. He also said with some leadership support, the worst investor situation may actually come to an end.
