Markets on the rebound
Posted Aug 9, 2011 10:49 pm.
This article is more than 5 years old.
Investors are hoping a stock rally will continue when the North American markets open Wednesday morning.
Asian markets jumped in a new day of trading, boosted in part by an unprecedented pledge from the U.S. Federal Reserve to keep interest rates low for the next two years.
Markets in Australia, Japan and New Zealand made triple digit gains in the first hours of trading.
Meanwhile, the world’s economic troubles could mean good news for Canadians with variable rate mortgages.
Bank of Montreal deputy chief economist Doug Porter says the U.S. decision to keep their key rate near zero for the next two years will likely mean the Bank of Canada will keep its interest rates on hold well into next year.
After the announcement Tuesday afternoon buyers returned to the North American stock markets.
Toronto’s key index closed up 438 points as investors bought up stocks that were beaten down in price during recent plunges, while New York’s Dow Jones average closed up 430 points.
