Larry Summers Withdrawal Boosted Stock Markets

US shares have closed higher on the news of former US Treasury Secretary Larry Summers’ withdrawal from the race to be head of the US central bank.

He was among the front-runners to succeed Ben Bernanke as head of the Federal Reserve, one of the most powerful jobs in the US.

He was thought to want to reduce the amount of money being pumped into the economy faster than other candidates.

The Dow Jones rose 118.72 points, or 0.77%, to 15,494.78.

Earlier, markets in Europe and Asia had risen. At the end of trade in Europe, the UK’s FTSE 100 share index was up 0.6%, Germany’s Dax index was 1.2% higher and France’s Cac 40 was up 0.9%.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza