US Stock Markets Bouncing Back
July 31, 2007
Stock markets in the US have today showed strong performance thus far, signifying an apparent recovery from the losses throughout the course of last week.
The strong performance over trading this morning and yesterday has been echoed around the world, with most of the world’s major stock exchanges posting positive trading results.
US stocks closed up on yesterday, after recovering from the results of last week. After plummeting as a result of the stagnant housing market and perceived poor economic performance, the figures last week reflected the worst stock performance for over four years in the US.
Analysts feared that almost universal interest rate rises could begin to take their toll on businesses, hence market confidence hit rock bottom with widespread share sales driving prices and indexation figures down.
However, many companies have posted positive results since then, and the impact of tightening global economies seems not to have impacted upon company profits and performance too greatly.
The Dow Jones closed 92.8 points up, whilst the Dax and Cac in Germany and France were also up at the close. The Nikkei grew by 5.5 points, whilst the Hang Seng in Hong Kong also enjoyed a growth of in excess of 169 points.
The FTSE 100 in London closed down 9.1 points over the course of yesterday, although recovered through the morning today, up by over 124.2 points by midday.
With strong trading over the course of today, stock markets look set to continue their positive growth worldwide, as the takeover trend in recent years continues to remain strong in spite of higher interest rates.
Both the Bank of England and the European Central Bank are expected to make decisions on interest rates this Thursday, which could have a further knock-on effect on the performance of stock markets across Europe.