• Investing & Markets

Banks Work Together to Keep Dow Afloat

September 16, 2011 | Daily Capital

Economic conditions are far from ideal and uncertainty surrounding the European debt situation is likely to persist. However, it is encouraging to see coordinated efforts such as this – it highlights central banks’ willingness to take whatever means necessary to stem another fallout like 2008. Even if there is a Greek default, if it is done in an orderly manner, it should be bullish for equity markets.

Read more:

Banks Lead Dow to 186-Point Gain

Central bank promises of a flood of dollars for European lenders helped buoy investors’ spirits, keeping the recent rally rolling. Investors bought risky assets like stocks and commodities. The Dow Jones Industrial Average rose 1.7% and is up 4% in the past four days. The euro enjoyed its best day in a month. Gold, which has been seen as a safe asset, tumbled back below $1,800 a troy ounce. The European Central Bank-led effort to extend dollars to the Continent’s banks, announced ahead of Thursday’s opening bell in New York, is far from a final solution to the region’s debt woes. …

Read the full article at the Wall Street Journal.

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