On Wall Street and European stock exchanges, the stock prices have reached record levels, which is mostly thanks to the introduction to the U.S. Central Bank will continue to reduce interest rates.
On Wall Street, the Dow Jones strengthened 1.1 percent last week, to 46,758 points, while S & P 500 rose 1.1 percent, to 6715 points, and NASDAQ 1.3 percent, to 22,780 points.
The new records of these indices mainly thank you the hope of the investor that the U.S. central bank will continue to reduce the key interest rates.
Namely, all the latest data show that the American labor market weakens, which is the main reason for the recent reduction in the interest rate for 0.25 percentage points.
Investors hope the central bank will further reduce interest in October and December by the end of the year for 0.25 percentage points.
In public appearances, some leaders of Fed support that hope, and some say that it should not rush in interest reduction because inflation still moves significantly above the target levels of about 2 percent.
Last week was careful because there were no significant economic reports, given that federal services were temporarily closed because Republicans and Democrats fail to reach the agreement on the further financing of these services.
Investors are not too disturbed by temporary closure of federal services because this happens almost every year at this time and so far it has not been more sensitive to the economy and financial markets.
But the analysts warn that this PAT position could take a while.
“Given the polarization of the two parties and that both sides are firmly held by their positions, without an indication of one or another, it would not be surprised to take a long period of time,” said Jim Baird, director Plante Moran Financial Advisors, reports Hina.
And in the European stock exchanges, the stock prices have risen last week. The London FTSE index strengthened 2.2 percent, to 9491 points, while Frankfurt Dax jumped 2.65 percent, to 24,378 points, and the Parisian CAC 2.7 percent, to 8081 points.
Thanks to that, the Stoxx 600 index of leading European shares reached the record level last week.
