The United States is expected to cut interest rates on Wednesday, a measure Japan, the European Central Bank and Britain are forecast to follow by the end of next week to bolster economies facing recession.
Hungary became the latest country to seek finance from global lenders, agreeing a rescue package worth $25.1 billion to shore up its currency and markets.
Main lender, the International Monetary Fund, said if the crisis was prolonged and many more countries came calling for help, it would need more money.
The Federal Reserve is widely expected to cut U.S. rates by at least half a point to 1 percent, the lowest level since June 2004.
Stock markets firmed on the expected rate cuts. Japan’s Nikkei ended up 7.7 percent after the Dow Jones industrial average and S&P 500 indexes recorded their second-biggest points gains ever on Tuesday.
European shares climbed 3.2 percent.
But analysts said the market recovery would be short-lived.
But given the severe recession into which the global economy is slipping, it is likely that we have not seen the bottom of the stock market yet.
No comments:
Post a Comment