Markets rally on Fed announcement of near zero interest rates till 2013
Hope fills the air for markets worldwide as Fed announcement sees the Dow rallying up 429 moments before closing. August 10, 2011 | Timothy ShimAfter more than a day of trading in the west and close to two days of chaos in Asia, the US Federal Reserve released a statement mid-day on Tuesday stating that it expected to keep key interest rates close to zero through mid-2013 as its key policy action in banishing the storm clouds hovering over the US economy. “The tone of the Fed’s statement is very downbeat. They are very nervous about the economy.” said Mark Zandi, chief economist at Moody’s Analytics in a statement. Never before has the Fed made an open announcement of a solid timeline for keeping interest rates low, and caused hair raising moments as trading on the Dow remained volatile until closing, before managing to rally up 429 points at closing. This morning will see Asian markets open for the third day of trading since the S&P downgrade of the US sovereign rating that set markets into a tailspin, and there are many indicators of a promising outlook, such as the healthy closing of the Dow, and strong openings in Australia, New Zealand, and Japan. Markets in Australia and New Zealand, among the first to open for a Wednesday trading session have made a good rally and are showing green across the board, with S&P/ASX200 up 3% and NZX50 up close to 4%. The Nikkei 225 has also traded strongly since opening, up 1.4% to 9,073.37. Exchanges in Malaysia, Thailand, Singapore and more are opening with hope in the air after two days of trading that saw many close to panic that a bear market is looming. Wall Street’s Dow Jones industrial average finished Tuesday with a 429-point rally upon Fed offer of super-low interest rates for two more years, clawing back upwards from the 634-point plunge of Monday. ...Please login to read the complete article. If you already have an account, you can login now or subscribe/register.
Categories: Exchanges, Markets & ExchangesExchanges,Markets Exchanges, Exchanges,Markets & Exchanges, Keywords:Nikkei, Dow, ASX200, NZX50, Federal Reserve Nikkei, Dow, ASX200, NZX50, Federal Reserve
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