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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.

Source: ABCNews

Date: 4/02/2009

Keys: stock market, economics, governments

Link: http://www.abcnews.go.com/Business/story?id=7241896&page=1

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.

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