London Stock market reflects on US moves
After a bumper day on the stock market yesterday it appears as though the hangover from the night before has already kicked in. While the Dow Jones was up 6.8% on Monday, and the FTSE 100 up 2.9%, today so a fallback in prices after the recent run of late. The $1 trillion rescue package announced by the US authorities has instilled some confidence into the market and given investors something to think about, but will it be enough?
Opinion is very much divided about whether the $1 trillion US rescue package will be enough to resurrect the US economy and the worldwide economy although a surprise increase in UK inflation today would appear to lend some strength to improved rescue hopes. As we have mentioned on a number of occasions, traditional rescue packages and traditional fiscal stimulus programs have failed so far to refloat economies around the world. Literally nobody around today has seen a situation quite like the scenario today and nobody really knows how the endgame will pan out. It will be interesting to see how stock markets around the world react over the next few days as details of the US one trillion dollar bailout continue to emerge.
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