Stock markets rose on Wednesday of this week after promising economic announcements, including a new effort by central banks to help struggling European economies, reports the Los Angeles Times.
According to their article, the Dow Jones rose “390.76, or 3.4% to 11,946.39 immediately after the opening bell. Leading indexes were up 4.2% in Germany and 3.3% in France.” The rise in markets came after China announced that they would be lowering the amount of money banks had to maintain in their reserve. As a result, banks should be more willing to lend out money which will allow for more money to flow through the markets.
When the markets opened on Wednesday the Federal Reserve, the European Central Bank and three other central banks announced the release of a new program that would increase access to money for struggling European banks. In addition to China’s announcement, the United States through payroll company ADP announced just before the markets opened that the private sector added 206,000 jobs in the month of November. This news further increased the hopes of investors all over the world that the markets will get better and that in the United States holiday spending may continue.
SOURCE: The Los Angeles Times
IMAGE: Courtesy of The Los Angeles Times