FTSE 100 bounces on Chinese stimulus package hopes
After a disastrous few days the FTSE 100 index rebounded 3.8% today as traders became aware of the potential for a new Chinese stimulus package which could, along with the US stimulus package, stop the sharp decline in the worldwide economy. Stock markets around the world rallied although there is some scepticism in the Far East as to whether the Chinese authorities are ready to announce a massive stimulus package, as rumoured.
The mining industry, which has come under particular pressure of late, was the main beneficiary with a number of mining stocks rising by as much as 20% from recent lows. There is a feeling that as and when the Far East economy starts to pick up we will see demand for mining materials which will then filter through into the mining stocks. This is the first real sign that the Chinese authorities are willing to pour billions upon billions of dollars into the economy and along with the massive US financial stimulus package making its way through Congress there is hope that the worldwide economy will start to level off.
The next few days are vital for the short to medium term direction of worldwide stock markets as we now need firm news to back up rumours and speculative buying which has appeared over the last 24 hours.
Share this..
Related stories
What does the future hold for the UK economy?
As the Office for National Statistics issues yet more revisions regarding the performance of the UK economy during the first quarter of 2009 there are concerns about UK government forecasts for the future. The UK government is forecasting economic growth of 1.25% in 2010 although the Organisation for Economic Co-operation and Development believes that the UK economy will show no growth and effecti...
Read MoreLloyds TSB Reports 70% Drop In Profits
Profits at Lloyds TSB, one of the leading UK banks, fell by 70% for the first half of 2008 with the bank reporting a figure of £599 million compared to £1.99 billion for the same period last year. While the bank has been hit by the credit crunch, Lloyds offers the least overseas diversification of any of the UK majors, something which is starting to worry analysts a little.
In a...
Is the UK already in recession?
The revelation by Ernst & Young that the UK is already in recession with economic growth forecast to fall this year and fall further next year to 1% will shock many. Over the last few weeks we have been subjected to a barrage of victorious headlines stating that the rescue package was working and the UK would be move forward over the next few months. But this is certainly not on the cards yet!
Will Bernard Madoff be the last of the great fraudsters?
As Bernard Madoff contemplates 150 years behind bars in the US many people are wondering whether the U.S. regulators have finally purged the system of the big-time fraudsters. The Madoff fraud involved billions upon billions of US dollars and has seen many people literally lose their life savings and end up with nothing to show for their working lives. While the U.S. regulators were relieved that...
Read MoreRein in your spending, warns investment group
Earnings are growing at the lowest rate for ten years and but household expenses are going up, according to a new study.The report by the Alliance Trust Research Centre warns that people are refusing to pay attention to financial facts and spending more than ever, out of sync with their salaries.Shona Dobbie, head of the Alliance Trust Research Centre, said: "Far from never having it so good, we'v...
Read More