The recent report from the news agencies highlighting a sharp rise in stocks in US financial institutions on Friday, October 21st 2011, predicts a nervous attitude of the US investors towards the European debt crisis. These investors stated that the European crisis was still important to them and it is still more important on forefront to help recover the Euro countries from debt issues.
The improvements in the US stocks have provided a little relief to the investors in US, Europe as well as in Asia, as it will firstly help US to get better in their own recession issues, and therefore can concentrate more on the European debt crisis. As one US economist puts this development this way, ‘Europe is still the main concern. Earlier this month, we had these two big fears about recession in the U.S. and worries about Europe.’ Another US investor argued this way, ‘The worries about recession are starting to recede a bit, and in Europe, we’re expecting to get some definitive answer in the next week.’
The facts shown in the recent news articles are appreciating Dow Jones industrial average to rise up to 177 points here in US on Friday morning. American Express also rose up to 1.5% stock points. Also several other large scale businesses gained higher points, e.g. Walt Disney and McDonald’s, gaining a percentage rise of 1.4% each. These facts suggest that the economic condition in US is improving day by day, as the developments of stock points suggest that US is going to recover from a 4 year recession crisis. How far this development goes, and how much stock points are the US stock markets going to earn in next few weeks is another issue, but the important issue at hand that we all should focus at the moment is the European debt crisis and all eyes should be focused on that. The improvement in the US stock points must also be based on the concentration of this development in terms of an enhancement in the European debt crisis. How can that be a possibility should be the US investors’ next step to pursue.
In fact, investors are already keeping an eye on that issue and their efforts must not be shattered. They have already been expecting a plan to be sorted out within next week. Further delays, according to the US investors, might be expected from European officials due to certain reasons, as still there has been no news from Europe on this issue.
On the other hand, with the rising stock in US, some of the big fish in Europe are also in a recovery phase, e.g. General Electric stocks are sliding smoothly after the company had announced the earnings of 31cents per share. Additionally, there have been made a few mega deals between European companies and other international companies.
These developments show that there can definitely be expected a rise in European stock markets as well. The improving financial standing of US and Japan can give a little hope to drowning European economies as the US investors have predicted, and in future that can provide huge economic reliefs.