US markets set for 4% rally
Early indications are that the US investment markets will follow the lead of Europe with dealers expecting a 4% rally at the open. This is purely and simply because of the EUR750 billion bailout package announced earlier today which would appear to have injected significant confidence into European financial markets. But will this rally hold?
When you consider that the UK market was down around 9% over the last week, with European markets following suit, a rally in America will bring much needed comfort to worldwide markets. However, while the euro zone bailout package has been well received in all corners of the globe there is no doubt there is still some work to be done to ensure the European Union is not brought down by speculators.
There's no getting away from the fact that Portugal, Spain, Italy, Ireland and the UK all have very difficult economic environments to contend with and may at some point require financial assistance. However, if the European Union can get through this particularly troubled patch it would be a very big feather in the cap of European Union leaders and bode well for the future. Good work so far but more to follow?
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