European Shares rally

International Relations

European Shares

This is a paper concerning European share rallying. There is one reference used for this paper.

The stock market has seen a number of changes in the past couple of years. It is important to look at an article concerning the European market and how its shares have rallied, while determining its pertinence to international business.

Market Rally

On April 2nd 2004, the European markets had their highest numbers since the day before the deadly Madrid bombings. These numbers were boosted by the latest payroll numbers from the United States, as well as a decline in crude oil prices. Investors have been concerned about the market due to the sluggish United States economy in the past few years. While many feel interest rates have hit their lowest numbers and expect an interest rate hike in 2005, others speculate the Federal Reserve will wait to see if the United States payroll will continue to increase (http://biz.yahoo.com/rf/040402/markets_europe_stocks_9.html).

Impact on Business

These numbers are important to International businesses as they ease the concerns of investors worldwide about the market. By providing proof that the economy is beginning to rebound in the United States, markets overseas will start to increase, thus increasing economic factors internationally. These factors include lower unemployment due to new jobs being created, and increased earnings and spending power.

Conclusion

The decline of the United States economy, as well as high crude oil prices and terrorist actions have had a negative impact on International business. Recent payroll figures from the United States have bolstered confidence in a number of investors, causing the European markets to rally for the first time in almost a month. Many are hopeful the economic crisis is over and there will be a continuance of this trend.