The US, Germany and other European stock markets have seen great growth. There has been a big decline in crude oil. This is good news for investors around the world. It is believed that the stock markets around the world celebrated the sharp fall in the price of oil. Due to this, the US, Germany and other European markets closed with a record high on Wednesday.
The S&P 500, the major index of the US stock market, on Thursday saw its biggest rally in a day since June 2000. The Nasdaq saw the biggest gain in a single day since March 2021. On the other hand, European markets also showed great gains. The German Stock Exchange’s flagship index, the DAX, jumped 7.9 per cent. Earlier this week, Germany’s stock exchange entered the bear phase.
The main index of the stock market of England FTSE 100 also saw a tremendous increase. It closed up 3.25 per cent. On the other hand, Euronext 100, the main index of European markets, also closed with a gain of 5.75 percent. The CAC 40, the main index of the French stock market, also closed in the green. However, it showed less rally than other markets. It closed with a gain of just 0.15 per cent.
It is being told that the main reason for the rise in the US and European markets is a big fall in the price of crude oil. Crude has fallen the biggest in a single day since the Corona epidemic began. The UAE statement is believed to be the reason for the fall in crude. The UAE has said that OPEC members will help increase crude production.
If crude prices remain low, it will reduce the fear of rising inflation worldwide. Crude had reached $130 a barrel. Due to this there was a fear of rising inflation and slowing economic growth around the world. In India too, concern had increased due to expensive crude. This was expected to increase the interest rate of RBI soon.
On Wednesday, the Dow Jones rose 653 points, or 2 per cent, to 33,286 in the major indices of the US stock market. The S&D 500 closed at 4,277 with a gain of 107, or 2.57 per cent. Nasdaq was up 460 points, or 3.59, at 13,255 at the end of trading. Financial and technology stocks in the US were up well.
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