25-01-2008
New optimism prompts market recovery
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Optimism in the ability of the US to move away from recession has generated positive momentum on Asian and European stock markets.
The market recovery has been prompted by a belief that America's economic fortunes will be revived by the actions of the US Federal Reserve and the White House, reports the BBC.
"We expect sharp gains and losses in the next few days and weeks," said Heinz-Gerd Sonnenschein, a strategist at Germany's Postbank.
"The US has done many things to stabilise the market but all the bad news is not yet out there."
News from the US of a recovery plan worth £76 billion led to a rally on the FTSE 100 index, resulting in an increase of one per cent.
In Germany, the news added 2.55 per cent to the country's Dax index.
In related economic news, a trader in France has been accused of committing fraud against Societe Generale, resulting in loses of €4.9bn (£3.6 billion).