Business

Bargain hunting lift global stocks
by Magdalena Rosova

World stocks rose sharply on Tuesday, stock market is in session of bargain-hunting gains after a rally on Wall Street. Another reason expectation of a cut in U.S interest rates.

The economic crisis in USA weakened the dollar. After the Dow Jones Industrial Average jumped more than 10 percent on Tuesday, Wall Street set a weaker start.

It is widely expected that the Fed will cut its key rate by 50 points. That would mean 1.0 percent down for rates. Investors are also waiting for cuts. China said it was cutting rates on Wednesday and other countries are about to think the same.

"The Fed doesn't have too many more rate cuts left at its disposal but there is still scope for them to ease further," said Darren Winder, an equity strategist at Cazenove.

The Bank of England and the European Central Bank are both lowering their borrowing costs next week. Noone knows exactly how much will any of these actions impact the major economies, mainly after U.S. reported lost of nearly 180,000 jobs in this month. Although this threat to the world economy, stock markets keep on hunting after recent losses.

Morgan Stanley Capital International (MSCI) said the all-coutry world index was up 3 percent after it gained 7 percent Tuesday.

After one of the yenÂ's biggest drops ever, the yen soared and got stronger than the dollar. The dollar fell about 2 percent. Tuesday the dollar climbed more than 6 percent against yen. It was the bigges one-day gain since 1974. The euro strenghten 0.75 percent against the dollar to $1.2810.



related story: http://www.forexpros.com/news/forex-news/global-markets-bargain-hunting-after-losses-boosts-world-stocks-1079

by Magdalena Rosova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.


edited by beata Biskova

Labels: Business, CantellTV, Chris Cantell, Christopher Cantell, digital broadcasting, SigEx Foundry, SigEx Telecom

posted by Blog TechSource @ 6:54 AM