QE2 has boosted the World Stock Markets

QE2 has boosted the World Stock Markets

The world stock markets have been boosted on the Fed government’s announcement of buying more US $ 600 Billion of Bonds (Sophisticated way to print money.)

The federal government will print US $ 75 every month for next 8 months means up to the middle of the 2011. And because of this money printing activity by the federal government, the dollar is going to weaken more.

And that’s why the world stock markets have boosted like anything since yesterday.

According to Economic Times,

European stocks posted big gains in early trading. Britain's FTSE 100 advanced 1.6 percent to 5,839.89 and Germany's DAX climbed 1.2 percent to 6,698.12. France's CAC-40 surged 2.1 percent to 3,921.82.

Wall Street was set for modest gains. Dow futures added 31 points, or 0.3 percent, to 11,208.00 and broader S&P futures rose 3.5, or 0.3 percent, to 1,200.90.

In Asia, Japan's benchmark Nikkei 225 stock index jumped 2.2 percent to 9,358.78 after being closed for a holiday Wednesday and despite pressure on exporters as the dollar fell below the 81 yen level.

South Korea's Kospi rose 0.3 percent to 1,942.50 _ close to a three-year closing high _ and Australia's S&P/ASX 200 gained 0.5 percent to 4,745.30.

Hong Kong's Hang Seng index climbed 1.6 percent to 24,535.63 and China's Shanghai Composite Index closed up 1.9 percent at a seven-month high of 3,086.94.

Elsewhere, markets in Malaysia , India , Singapore and Taiwan advanced while New Zealand's index fell.

In New York on Wednesday, the Dow Jones industrial average rose 26.41 points, or 0.2 percent, to 11,215.13, the highest close in two years after the Fed outlined its bond buying plan.