This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-35119631
The article has changed 7 times. There is an RSS feed of changes available.
| Version 5 | Version 6 |
|---|---|
| Stock markets welcome US rate rise | Stock markets welcome US rate rise |
| (about 9 hours later) | |
| European shares have surged after the US central bank increased interest rates for the first time since 2006. | European shares have surged after the US central bank increased interest rates for the first time since 2006. |
| The UK's FTSE 100 index closed 0.7% higher, while the main share indexes in France and Germany saw much bigger increases. | The UK's FTSE 100 index closed 0.7% higher, while the main share indexes in France and Germany saw much bigger increases. |
| The dollar also rallied against other currencies after the US Federal Reserve increased the range for its benchmark rate to between 0.25% and 0.5%. | The dollar also rallied against other currencies after the US Federal Reserve increased the range for its benchmark rate to between 0.25% and 0.5%. |
| But after a bright start, Wall Street lost ground in afternoon trading. | But after a bright start, Wall Street lost ground in afternoon trading. |
| The Fed said the rise was part of a "gradual" process to get rates back to normal after years of being near zero. | The Fed said the rise was part of a "gradual" process to get rates back to normal after years of being near zero. |
| At the close of the markets, London's FTSE 100 was up 0.7% at 6,102.54, while Frankfurt's Dax jumped 2.6% and the Cac 40 in Paris was 1.1% higher. | At the close of the markets, London's FTSE 100 was up 0.7% at 6,102.54, while Frankfurt's Dax jumped 2.6% and the Cac 40 in Paris was 1.1% higher. |
| Stocks on Wall Street dropped in afternoon trading, having recorded big rises on Wednesday after the Fed's announcement. | Stocks on Wall Street dropped in afternoon trading, having recorded big rises on Wednesday after the Fed's announcement. |
| The Dow Jones rose 1.3% on Wednesday, but on Thursday it closed down 1.43%. | |
| However, analysts were upbeat about market performance running up to Christmas. | However, analysts were upbeat about market performance running up to Christmas. |
| "With the uncertainty surrounding the Fed now cleared and panic not ensuing, everything is now in place for a strong end to the year," said Craig Erlam at Oanda trading group. | "With the uncertainty surrounding the Fed now cleared and panic not ensuing, everything is now in place for a strong end to the year," said Craig Erlam at Oanda trading group. |
| Carmakers, banks and insurers - stocks which do well when an economy is growing - rose. | Carmakers, banks and insurers - stocks which do well when an economy is growing - rose. |
| 'No nasty surprises' | 'No nasty surprises' |
| On the currency markets, the dollar rose against major currencies following the Fed's decision. | On the currency markets, the dollar rose against major currencies following the Fed's decision. |
| Higher rates make the US a more attractive market for deposits, meaning demand for the dollar is likely to rise. | Higher rates make the US a more attractive market for deposits, meaning demand for the dollar is likely to rise. |
| The dollar rose by 0.95% against the euro, to €0.9255, and by 0.76% against the pound to, £0.6722. | The dollar rose by 0.95% against the euro, to €0.9255, and by 0.76% against the pound to, £0.6722. |
| British government-issued bonds, or gilts, rose in price following the Fed decision, meaning lower yields, or income. | British government-issued bonds, or gilts, rose in price following the Fed decision, meaning lower yields, or income. |
| While the spectre of higher rates is often bad for existing debt prices, analysts said investors were pleased future Fed rate rises would be "gradual" in nature. | While the spectre of higher rates is often bad for existing debt prices, analysts said investors were pleased future Fed rate rises would be "gradual" in nature. |
| "Overall, there were no nasty surprises in there - the Fed sounded quite dovish, data-dependent, so I think fixed income markets were quite happy with it," Jason Simpson at Societe Generale. | "Overall, there were no nasty surprises in there - the Fed sounded quite dovish, data-dependent, so I think fixed income markets were quite happy with it," Jason Simpson at Societe Generale. |