The global stock markets touched their multi year low in the first quarter of 2009 due to increasing fear of a US banking collapse, and also due to falling demand for many commodities across the globe.
All the governments and central banks came together in no time and started pump priming their economies.
There was major interest rate cuts across countries, with Europe , US and Japan running below 1 %. Also the central banks also provided nearly one trillion dollars worth new funding and guarantees to the banking system. Also China pushed through with a massive 550 billion dollar stimulus package which helped to restore some of the lost confidence.
In the last few weeks, there is indeed some sanity returning to the global stock markets, with all the special initiatives by various central banks and also the governments. Now we need to see whether this small market recovery will be wading off, or will be built upon for further improvements in the months to come. And if there is a concerted and synchronized effort from major countries then there could be a healthy recovery across the globe over time.
Global stock markets heading for a mild recovery
April - 25 - 2009 - Saturday
