Wall Street rises on GDP, stim­u­lus hopes

The Pak Banker - - COMPANIES/BOSS -

Wall Street rose fol­low­ing a re­port on U.S. eco­nomic growth which met ex­pec­ta­tions and on hopes for fur­ther stim­u­lus from the Fed­eral Re­serve and the Euro­pean Cen­tral Bank.

U.S. eco­nomic growth slowed, as ex­pected, in the sec­ond quar­ter as con­sumers spent at their most slug­gish pace in a year. The fig­ure was bet­ter than in­vestors' worse fears but still weak enough to po­ten­tially push the Fed closer to pump­ing more money into the econ­omy.

"The Fed's con­cern and man­date is em­ploy­ment. An­nu­al­ized GDP growth at 1.5 per­cent can­not be­gin to mend the un­em­ploy­ment pic­ture," said Joseph Tre­visani, chief mar­ket strate­gist at World­wide mar­kets in Wood­cliff Lake, New Jersey.

Fed Chair­man Ben Ber­nanke and other pol­i­cy­mak­ers "will have all the ra­tio­nale they need to open the liq­uid­ity spigot." Stocks leapt nearly 2 per­cent, eras­ing much of the losses for the week, as ECB chief Mario Draghi said he would do what­ever it takes to save the euro.

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