Image Source: Washington Post

BY KERRY LEARY

ANCHOR LAUREN GORES

U.S. stocks skyrocketed Thursday to record highs. Economic experts are pointing to two different reasons for the big jump --- economic reports from the United States and a European Central Bank plan to support the Euro. CNBC reports.

“Take a look at the S&P 500. We are at a new four-and-a-half year intra-day high and right now, the S&P is poised to close at its highest levels since January 2008.”

And the Wall Street Journal adds:

“Positive U.S. economic reports added fuel to the rally … Better-than-expected growth in private-sector jobs was reported by Automated Data Processing, and initial jobless claims during the latest week also were lower than expected.”

US stocks aren’t the only part of the thriving market. On Thursday, the Euro rose to a two month high. That, after European Central Bank president Mario Draghi promised the ECB will buy an unlimited amount of government bonds to restore confidence in the euro. A Sky News analyst notes:

“It is the closest thing we have seen yet to the bazooka or anything of the sort from the ECB ... the ECB can go into the market and buy up certain troubled government's debts.”

Take Spain, for example. The ECB could buy Spain’s debt allowing the country could borrow at a more reasonable level. But, there’s a catch. A writer for Forbes reports:

“The trouble is that the program still requires countries like Italy and Spain to tap European bailout facilities — the EFSF and ESM — for primary funding before the ECB will point its bazooka their way. There has been resistance to signing on for such programs, due to the strict austerity measures they entail.”

The Washington Post reports, the new program has been highly anticipated from economic leaders throughout the world.

“The ability of the currency union’s governments to act has often been constrained by national politics, the difficulties of coaxing agreement from 17 sets of leaders and their parliaments … the bank has been seen as the one institution able to act with the necessary speed and financial firepower to convince international investors that the euro will hang together … ”

Thursday’s economic news comes before Friday’s monthly unemployment numbers.

Stocks Rally on News of ECB Plan and U.S. Economic Reports

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Sep 6, 2012

Stocks Rally on News of ECB Plan and U.S. Economic Reports

 

Image Source: Washington Post

BY KERRY LEARY

ANCHOR LAUREN GORES

U.S. stocks skyrocketed Thursday to record highs. Economic experts are pointing to two different reasons for the big jump --- economic reports from the United States and a European Central Bank plan to support the Euro. CNBC reports.

“Take a look at the S&P 500. We are at a new four-and-a-half year intra-day high and right now, the S&P is poised to close at its highest levels since January 2008.”

And the Wall Street Journal adds:

“Positive U.S. economic reports added fuel to the rally … Better-than-expected growth in private-sector jobs was reported by Automated Data Processing, and initial jobless claims during the latest week also were lower than expected.”

US stocks aren’t the only part of the thriving market. On Thursday, the Euro rose to a two month high. That, after European Central Bank president Mario Draghi promised the ECB will buy an unlimited amount of government bonds to restore confidence in the euro. A Sky News analyst notes:

“It is the closest thing we have seen yet to the bazooka or anything of the sort from the ECB ... the ECB can go into the market and buy up certain troubled government's debts.”

Take Spain, for example. The ECB could buy Spain’s debt allowing the country could borrow at a more reasonable level. But, there’s a catch. A writer for Forbes reports:

“The trouble is that the program still requires countries like Italy and Spain to tap European bailout facilities — the EFSF and ESM — for primary funding before the ECB will point its bazooka their way. There has been resistance to signing on for such programs, due to the strict austerity measures they entail.”

The Washington Post reports, the new program has been highly anticipated from economic leaders throughout the world.

“The ability of the currency union’s governments to act has often been constrained by national politics, the difficulties of coaxing agreement from 17 sets of leaders and their parliaments … the bank has been seen as the one institution able to act with the necessary speed and financial firepower to convince international investors that the euro will hang together … ”

Thursday’s economic news comes before Friday’s monthly unemployment numbers.

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