Stocks bounce back in Europe, Asia and the US

Jerimiah Yap – Fourth Estate Cooperative Writer

London, United Kingdom (4E) – WIth the way the stock market bounced back the past two days, it seems Europe is on its way to recovery. For the second consecutive day, European stocks gained and companies posted earnings. The Stoxx Europe 600 Index climbed to 0.4 percent from the previous day. The United States and Asia also saw their stocks gain. The United States’ Standard & Poor’s 500 Index gained 0.2 percent and Asia’s MSCI Asia Pacific Index rose 1.5 percent.

Banks like the European Central Bank lowered their interest rates to ease financial burden on Spanish banks. The European Central Bank isn’t the only bank to offer temporary relief to Spanish banks. The People’s Bank of China also lowered interest rates.

Managing director Theodore Krintas of Attica Wealth Management said via Bloomberg: “Markets are focusing on the fact that earnings are still strong. What I see is a kind of aversion to bonds generally. It seems that European markets are gaining from the fact that extra liquidity is moving towards equities.”

The gains made by the three regions surpassed estimates made by economic analysts.

Europe isn’t the only region to show growth. The United States real estate market showed signs of growth last month. Purchase of previously owned homes were at 1.5 percent, its fastest since January. With the growth experienced by the United States, its economy “expanded at a ‘modest to moderate’ pace in June and early July, as retail sales and manufacturing cooled in some regions, the Federal Reserve said yesterday in its Beige Book business survey, which is based on reports from its 12 district banks,” Bloomberg News reports.

Companies that have experienced gains are Electrolux AB (ELUXB) (4.6 percent), Alstom SA (ALO) (2.6 percent), Afren Plc (AFR) (7.6 percent), Fortum Oyj (FUM1V) (6.2 percent) and Hermes International SCA (RMS) (2.4 percent).

The two-day climb is a good sign for the world economy.

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