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Wednesday, August 24, 2011

drink alcohol to fight your alcoholism...Stock markets rise on hopes of more Fed stimulus



Stock markets and gold prices have risen, while the dollar has fallen, as markets expect further stimulus measures by the US Federal Reserve.

Markets on Wall Street closed strongly, with the Dow Jones ahead by 3%, and the S&P and Nasdaq also rebounding.

It came after European markets closed up 0.7% to 1.1%, and gold had hit a new record earlier in the day.

The Fed's chairman, Ben Bernanke, is widely expected to discuss further stimulus actions in a speech on Friday.

This may involve more "quantitative easing" - buying up US debt to inject more cash into the financial system.

The Fed has already carried out two rounds of quantitative easing (QE), to stabilise the 2008-09 financial crisis, and more recently to boost the flagging recovery.

Earlier this month, the US central bank also took the unusual step of saying that it expected to keep short-term interest rates close to zero until 2013.

On Friday, Mr Bernanke will give the keynote speech at the annual meeting of central bankers at Jackson Hole in Wyoming.

The second round of QE and the interest rate commitment were hinted at by Mr Bernanke when he spoke at the same event last year.

Anticipation in the US of a fresh monetary offensive from Mr Bernanke, saw the S&P index close up by 3.4%, and the tech-based Nasdaq finish ahead by 4.3%.




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