US growth boosts markets, steadies emerging currencies

US growth boosts markets, steadies emerging currencies

US growth boosts markets, steadies emerging currencies Strong US growth figures brought a reprieve to markets on Thursday after a Federal Reserve stimulus cut rattled emerging economy currencies despite rate rises by India, South Africa and Turkey.

European stocks initially fell after the Fed`s announcement it would reduce its bond-buying program by USD 10 billion to USD 65 billion per month, citing a pick-up in the US economy.

But the mood turned around after the announcement that the US economy grew at a stronger-than-expected annual rate of 3.2 percent in the fourth quarter.

By the end of trade, Frankfurt`s DAX 30 added 0.39 percent and the CAC 40 in Paris rose 0.55 percent. London`s FTSE 100 was marginally lower.

And on Wall Street, the news on fourth quarter economic growth, as well as some significantly strong corporate earnings results, notably Facebook`s, drove a firm rebound.

The Dow Jones Industrial Average ended up 0.70 percent, the broader S&P 500 1.13 percent, and the Nasdaq Composite, powered by strong gains in Facebook, Twitter, Google and other online ad-dependent tech stocks, jumped 1.77 percent.Earlier, Asian markets, which mostly finished trading ahead of the us GDP announcement, fell heavily again on the news the US central bank […]

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