The stock markets have rallied strongly today despite the latest economic news showing that GDP in the US has fallen by 6.1% in the last quarter. The consensus seems to be that the worst of the recession is now behind us.

This was a view also echoed by the Federal Reserve who after announcing that interest rates would remain unchanged, hinted that the speed of the economic decline was slowing down.

As a result the Dow Jones finished 2.11% higher at 8185.73 whilst the S&P 500 finished 2.16% higher at 873.64. The Nasdaq fared even better finishing 2.28% higher at 1711.94.

In Europe all of the major markets moved significantly higher as well. The FTSE 100, CAC 40 and DAX finished 2.27%, 2.16% and 2.11% higher to close at 4189.59, 3116.94 and 4704.56 respectively.

On the currency markets the US dollar has struggled against the GBP and the EURO but has strengthened against the YEN. The GBP/USD and EUR/USD are trading significantly higher at 1.4770 and 1.3265 respectively whilst the USD/JPY has had a solid day and is currently trading at 97.63.

 

 

Filed under: Market News

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