Share prices on the US and European stock exchanges rose on Wednesday, and the value of the British pound also increased after the Bank of England’s unexpected intervention in the market.
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In response to a historic fall in the value of the British pound against the US dollar, the Bank of England said it would temporarily buy long-dated British government bonds “to restore calm market conditions”.
This “intervention helped calm the markets and led to what we saw this morning [obligāciju ienesīguma] bullish reversals to the opposite trend,” said Edward Jones analyst Angelo Kurkafass.
The Bank of England’s intervention followed criticism from the International Monetary Fund (IMF) of the new British budget, which it said could increase inequality and exacerbate inflation.
The British pound, which had fallen to an all-time low against the US dollar, gained about 1.5% after the intervention.
The Dow Jones Industrial Average rose 1.9% to 29,683.74 on Wednesday, the Standard & Poor’s 500 rose 2.0% to 3,719.04, and the Nasdaq Composite rose by 2.1% to 11,051.64 points.
London’s FTSE 100 rose 0.3% to 7,005.39 on Wednesday, Frankfurt’s DAX 30 rose 0.4% to 12,183.28 and Paris’ CAC 40 rose 0.2% to 5,765. .01 for the point.
WTI crude oil rose 4.6% to $82.15 a barrel in electronic trading on the New York Stock Exchange on Wednesday. The price of “Brent” crude oil on the London Stock Exchange rose by 3.5% to 89.32 dollars per barrel.
The euro rose against the US dollar on Wednesday from $0.9594 to $0.9735/euro, the British pound rose from $1.0733 to $1.0889/pound and the US dollar against the Japanese yen fell from 144.80 to 144.11 yen per dollar. The value of the euro against the British pound was unchanged at 89.39 pence per euro.