Stock Markets and Economies Stabilising?
Monday March 30, 2009
An extended Wall St rally and the Australian stock market's best monthly gain in 21 years has many traders wondering if the market is beginning to stabilise even sooner than expected. Many of Australia's top financial institutions have maintained all along that Australia was in a better position to weather the conditions of the economic crisis, and perhaps recent gains do signal a return of the bull.
The ASX 200, the primary indicator on the Australian stock market, recently rose one percent to realise a 10-week high, and other market indicators such as the All Ords also gained over 40 points. The Australian dollar has also firmed against the US dollar and traded at around 70 cents at the time of writing.
In other markets, the US economy has shown positive signs of recovery as stocks have shown gains of over 2 percent on the back of solid economic growth reports and jobless rates roughly in line with expectations. The current three week rally is also expected to deliver monthly gains in over 20 years judged on the S&P 500.
Elsewhere, in Japan stock have risen to a two-and-a-half month high as the market tracks Wall St gains and investors begin to put trust in an economic recovery. Similar result have been seen in other world stock markets.
While stock trading experts remain cautious about the short term future, it is clear that an air of optimism is surrounding markets for the first time since 2008 crashes.
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