Wall Street hits a four-year high amid hopes central banks will boost economies
Shares on Wall Street jumped to their highest level in four years yesterday, as hopes that central banks around the world would soon take action to stimulate their economies continued to propel US stock markets upwards.
The Standard & Poor's 500 index hit 1,422.46 in afternoon trade, taking its rise this month to nearly 3 per cent, helped in part by a perceived new urgency in Europe to overcome its debt crisis.
The improving investor sentiment was further underlined as interest rates on US Treasury bonds increased from 2.92 per cent to 2.98 per cent, after rising share prices undermined the safe-haven appeal of US government debt.
Wayne Kaufman, the chief market analyst at John Thomas Financial in New York, said: "I am looking for new highs in the major indexes. Overall there is no one major negative that's out there right now that people are scared of."
Shares in Europe also rose, extending a four-week rally, as investors bet that the European Central Bank (ECB) will soon start buying Spanish and Italian bonds to help lower their borrowing costs.
Germany's DAX index rose by 0.8 per cent, France's CAC-40 by 0.9 per cent and Britain's FTSE 100 ended the day 0.6 per cent higher.
However, despite the buoyant stock markets, trading volumes were light ahead of next month's central banks meetings when politicians are expected to take action to ease Europe's debt crisis and boost the economy.
Traders hope politicians have a new-found resolve to overcome the eurozone's block's debt crisis, which may allow Greece to remain in the single currency and keep the 17-member region from unravelling.
Antonis Samaras, the Greek prime minister, will meet the German Chancellor Angela Merkel, French president François Holland and Eurogroup head Jean-Claude Juncker in the next few days to try to secure more funding from the European Union, International Monetary Fund and ECB.
- 1 President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
- 3 Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
- 5 Game of Thrones is most-pirated TV show of 2014
President of Argentina adopts Jewish godson to 'stop him turning into a werewolf'
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Stoke-on-Trent becomes first British city to be classified as 'disaster resilient' by the United Nations
Sir Winston Churchill’s family begged him not to convert to Islam, letter reveals
AirAsia flight QZ8501 missing: Search for plane carrying 162 passengers from Indonesia to Singapore suspended overnight
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Millions of Britons struggling to feed themselves and facing malnourishment
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Nigel Farage: Ukip leader named 'Briton of the year' by The Times
Immigrants make UK racist, says Ukip councillor Trevor Shonk
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...