Markets around the globe — in London, Paris, Frankfurt and New York — all staged powerful rallies Thursday on hopeful signs that the world’s biggest economies are committed to working together to end the global recession. At the G-20 summit in London Thursday, world leaders agreed to infuse $1.1 trillion in loans and guarantees to help developing countries, as well as to enforce regulations on financial institutions — all in the name of global economic recovery.
Keys: stock market, economics, governments
Questions for discussion:
- Since stock markets are considered a leading indicator or predictor of future economic activity, why do you think that stock market investors are now more optimistic about an improving global business environment?
- Which businesses do you think will show the greatest improvement as the global economy begins to recover?
- Explain your reasoning.