Wall Street, Global Markets Responding to Federal Reserve Announcement
In response to the Federal Reserve announcement that it was cutting the interest rate at which banks borrow money, Wall Street shares opened sharply higher. After an hour, the Dow Jones had fallen back and was only up 1.10% at 12,986.7. Analysts will continue to watch the market throughout the day.
The news also boosted European markets. By late afternoon, the FTSE 100 was up 3.25%, Frankfurt's Dax was up 1.88% and the Cac 40 in Paris' was up 3.37%.
All three European indexes had been jumping between positive and negative territory throughout the day's trading.
The Fed's rate cut is intended to help with the liquidity problems facing many banks following the US housing slump.
Published on August 17, 2007
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