After a grueling week of slumping statistics and gory graphs, the international stock markets are beginning to pick themselves
Since last week, global stock markets have fallen consistently, a rare sight made much more likely by the economic position that much of Europe, North America and Africa have found themselves in. Typically, stocks will rise and fall daily but stay at almost an identical rate in a large timescale. These drops come coincidentally immediately after the US was bailed out from a financial default, dropping their credit rating from AAA to a less prestigious AA.
As of 9:46PM August 9th, this is the state of the 6 main stock markets around the world:
Now most of you probably don’t get what half of these numbers really mean, but what’s most important for the general public is the percentage in brackets. This says how much the market has grown/shrunk in the previous day. From these figures, today is a breakthrough day, with 5/6 rising and the loss of only 0.1% for Dax. The day started badly however, with most markets falling in the same fashion as they had been over the last few days.
The Federal Reserve, the government bank for the United States, was expected to implement a third serving of “quantitative easing” (QE) which is where the authorative power (in this case government) injects fresh money into the banking system to try and raise the economy, simply by giving them more money to work with. They simply said “our current plans regarding this issue will be kept until at least the spring of 2013” and also that “the US’ economic growth has been considerably slower than expected”.
China have also recently requested global aid to stabilize other countries (such as those in the Eurozone)’ financial markets, saying that if China could keep in the black, then everyone else could too. This situation seems much like individual life, where some people have money and others don’t. To me, this situation seems unpreventable and these banks should stop being so frisky with their money.
But what do you think? Are you in America and witnessing the rise and fall of stock markets? And is it expected with all the economic trouble now? Or is it a bolt out of the blue that we must keep working harder than usual to get things back to how they should be? Leave your thoughts below!
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