Last week saw encouraging growth on the United States stock market, as well as on the European and on the Asian markets. There have been a number of factors which led up to this situation- ranging from reasons related to international events and to in-house changes.
At the closing of the previous week, on Friday 21st of March, the United States stock market opened higher than expected, the Dow Jones indicator reaching 0.65%. According to investing.com, the Dow Jones Industrial Average already reached the 0.65% level during early trading hours, encouraging traders to act on the market. The high opening can be explained through the fact that the equity markets managed to recover from the previous day’s loses which came around due to the news released by the Federal Reserve officials according to whom interest rates will go up as soon as 2015.
The reason why the equity markets managed to recover has to do with encouraging news regarding the levels of unemployment, a report showing the manufacturing activities just outside Philadelphia are growing quicker than initially believed. To all this reasons, we should also mention Fitch Ratings taking off The United States from the negative ratings after taking notice of the US dollar’s stable outlook- which naturally led to the strengthening of the USD on the Forex market.
The increase of the Dow Jones also has to do with the international events related to Russia’s intervention in Crimea. If during the previous week the market flopped heavily due to concerns connected to Russia’s seize of power in Crimea, this week saw a reverse of the situation after president Putin assured international actors that Russia would not seek to occupy other territories in Ukraine or elsewhere. This assurance was enough for the market sentiment to recover quickly. The growth of the market is also explainable by assessing the United States’ decision to expand sanctions to twenty more Russian business owners (most of them having strong links with the Russian president).
Taking a look at individual companies one at the time, we would notice them seeing the price of their stocks going up, whilst only a few suffered drops. Twitter stocks climbed 0.52% on the New York Stock Exchange, remaining “unharmed” after Turkish Prime Minister Tayyip Erdagon tried to ban Twitter use in his country in order to stop the flow of information regarding his corruption allegation. AT&T stock prices also climbed with a soaring 1.03% increase after the company made an announcement according to which it will take pre-orders for Samsung Galaxy 5, making them available at $199 with a two years contract, and at $649 unsubsidized.
Were we to take a look at the companies which suffered drops, we would notice that Symantec Corporation dove in prices with 11.36% after CEO and President Steve Bennett was fired, leaving the company in a mild chaos. The famous jewelry company Tiffany dove 1.16% after turning in reports showing that the company had not reached its planned profit.
European stock markets also managed to open on Friday with good figures. EURO STOXX 50 rose with 0.27%- an encouraging sign for the EURO currency, marking a steady ascend on the Forex market. France’s CAC managed to rise with a 0.26%, whilst Britain’s FTSE 100 only rose by 0.23%. Germany’s DAX, nonetheless, saw the most impressive rise in Europe, with the stock market opening with an added 0.43%.
Investors will be further encouraged to buy and trade stocks according to internal and international events. Putin and his decisions on Russian military action seem to have a greater influence than expected on the stock markets, this being the reason why thousands of investors are keeping up with news coming from Kremlin and Washington.
The U.S. stock opening high last Friday and the increase of the Dow Jones indicator will only encourage investors to pump the market, leading to more and more stable markets, both in America, Europe and Asia.
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