European Stock Markets Rise on Fed Speculation

Stock markets in Europe gained 1-2 percent in morning trading on growing speculation that the U.S. Federal Reserve Chairmen Ben Bernanke will announce further quantitative easing at a speech scheduled later this week in Jackson Hole, Wyoming. A second round of quantitative easing wrapped up in June and consisted of a $600 billion program to buy U.S. debt to inject cash into the financial system.

Earlier this month Bernanke reaffirmed a pledge to continue with the current ultra-low interest rates. The combination of low yields together with an increase in the supply of the currency will likely lead to downward pressure on the dollar.

Source: BBC News

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