The central bank of USA for first time after 2006 raised the interest rates and as a result the shares in Europe have increased.
The countries where first the increment appeared was Germany, UK and France where the shares had growth between 1% and 3%.
Federal Reserve System (FED), the central bank of the United States decided after 10 years to move to this action so the rates go back to normal and not be near zero like it happens all these years.
It’s like Christmas came early in stock markets both in USA and Europe. Frankfurt’s Dax increased by 3%, Paris’ Cac 40 by 2.5% and London’s FTSE by 1.4%. These European stock markets followed the example of markets in USA and Asia. On Wall Street the Dow Jones increased by 1.3% while in Japan, Nikkei closed up 1.6%.
FED in a recent press conference left the door open for further changes in the future but confirmed that there won’t be another rate rise soon.
After this important action of FED, dollar rose in comparison with other big currencies, something that make USA a preferable market for deposits.
The bonds of British government have increased too after the decision of the central bank of USA and that means lower yields or salaries. As the analysts said that the rate rise can be sometimes harmful for the price of debts and the investors should expect the future rise to be more natural. But in general the markets and the investors were contended after many years.