The FTSE 100 saw impressive growth this week, after the US Federal Reserve revealed higher than projected figures. These developments across the Atlantic have injected life back into the home markets with the FTSE 100 and the FTSE 250 both showing signs of recovery.
This growth has come after the US Federal Reserve pledged to purchase an additional $40bn (£25bn) of mortgage backed securities per month. The FTSE 100 added 80 points (1.4%) and the mid-cap FTSE 250 grew by 235 points. Commodity prices which in turn positively affected mining stocks are said to be the dominating benchmarks of this development. This growth could be a sign of positive things to come, a possible sign that the economic woes of the past years are coming to a close.
However the global economy is a tricky and turbulent storm to tackle. What affects the US economy, ultimately affects our economy. These developments couldn’t have come at a more convenient time for the FTSE 100. For months the UK’s index of 100 leading shares has suffered due to the never ending euro crisis, first Greece and more recently Spain, both countries being in the unfortunate position of international bailouts.
Hopefully this is the last of the euro crisis, but with markets across the continent performing below par, as well as governments making questionable judgements, a crisis is never far from sight..