European markets surge

I watched a video about an overview on the European markets today, 9 October 2008.

Carter Evans, the news reporter, gives comments on the European markets. He sais that the European stocks opened higher today but around noon there is more disorder.

The reason because the European stocks opened higher is because of the positive news about the European Central Bank that reduced their banc lending rate.

IBM did what was expect. They made a net profit of 2,36 billion dollar, the reaction on the market was positive, they made a profit of 20 percent.

Dexia raised with 25 percent because the governments of France, Belgium and Luxembourg said they will support the Dexia Group when they are in trouble. The individual shareholder is relieved and that was tangible on the Belgian market.

Iceland took over their biggest bank: Kaupthing. This is already the third bank that the government took over in Iceland, a few weeks ago they already controlled Glitnir and Landsbanki. For Iceland the financial market is the most important market in Iceland, before the financial crisis they had a “financial boom” in Iceland.

According to me it's very important that the shareholders will be relieved. Only when there is no disorder the markets will repair themselves. That’s why the European government is so important. They have to make decisions to repair the markets. So they have to create some rest on the markets. They reduced their banc lending rate and this is a very important and good step. I hope we sit on the bottom and the markets can repair themselves.

Source: video from CNN: http://money.cnn.com/video/#/video/news/2008/10/09/news.nyse7.100908.cnnmoney
Title: European markets surge