Global Stock Markets Rise on US Fed Non Action

European stock markets have followed Asia’s by rising after the US central bank unexpectedly said it would not begin scaling back its massive economic stimulus programme.

London’s FTSE 100 index rose 1.4%, Paris’s Cac gained 1.1%, and Frankfurt’s Dax was up 1.2%.

The Federal Reserve said it would not scale back its bond-buying programme until the US economy had improved further.

The bank also cut its growth forecast.

The Fed now estimates that the US economy will grow by between 2.0% and 2.3% this year. That compares to a previous estimate made in June of between 2.3% and 2.6%.

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