Stock Prices Rise Due To ECB
U.S. stocks have been seeing rises due to reports that less people are filing for unemployment benefits, but the stock market also had a positive reaction due to news that the European Central Bank will be cutting some of its main interested rates. The Dow Jones Industrial Average saw an increase this morning, and this increase was significant cause it has seen a large yesterday. The decision of the ECB to cut part of its interest rate was made in order to help to expand their shrinking economy. The ECB is trying to push policies to help their economy, but they do not intend on taking on the same policies that the Fed and the Bank of Japan are currently using.
It is beneficial to the global economy that the ECB is starting to push new changes that would help to stimulate their economy. This scenario well depicts how important the global economy is to the American economy, such news in Europe had a large impact on the American market. If the ECB is willing to take a more active role in helping their economy to recover, the American economy may see large growth as well.
Written by: Jessica Ho
Source: The Wall Street Journal