Europe Agreed The Budget Increase, Wall Street Surged
The stock exchange Wall Street rally following an agreement between the European countries tighten its budget in improving market confidence. This plan is also believed to be fighting a debt crisis that's been going on for two years.
Kesepekatan also diyakinin could fix the structural problems of the debt in each European country. However, investors are still not satisfied and still waiting for a real step in perjuang against the European crisis.
"The deal (tightening) the fiscal year, it will help, but not for the long haul," said George Feiger, CEO of Contango Capital Advisors in San Francisco, quoted from Reuters, Saturday (10/12/2011).
"There is not a happy ending in this situation. There are only a solution that could reduce the suffering, "he added.
In welcoming the plan, S & P 500 index up to 6.5% percent compared to the end of last November. Unfortunately, yesterday the Exchange Uncle sam was dropped very deep due to the European Central Bank (ECB) stated will not be aggressive buying of bonds of European countries.
The reason, many investors who suspect the ECB will be committed to buy large amounts of European bonds to help the market. It turns out those mistaken. harapa
At least, trade Friday could replace lost yesterday in earlier trading, said one stock broker.
The Dow Jones index soaring 186,56 points (1.55%) to as low as 12, 184.26. Standard & poor's 500 index ranks 20.84 (1.69%) points to 1,277 level,19. The Nasdaq Composite Index growing 50,47 (1.94%) points to a level 2686,85.
In the week, the Dow Jones index up 1.4%, the S & P Index rose 0.9 percent and the Nasdaq Composite Index increased by 0.8%.
