2007年VOA标准英语-World Stock Markets Rise After Central Banks In

Stock markets in Europe and Asia posted gains Monday, while U.S. stock markets fell slightly. VOA's Michael Bowman reports from Washington, investors¹ appeared reassured² after central banks added cash to combat tight credit conditions that roiled³ markets last week.

The U.S. Federal Reserve became the latest central bank to inject further cash, adding $2 billion of temporary reserves to the U.S. banking⁴ system. Earlier, the European Central Bank released $65 billion, in addition to some $200 billion last week, while the Bank of Japan added $5 billion.

The central bank interventions⁵ are welcome news to nervous investors, according to Hugh Johnson, who heads the New York-based investment management firm, Johnson Illington Advisors⁶.

"It shows that the central banks are not going to sit idly by and watch conditions deteriorate⁷ in the financial markets and the economy," said Johnson. "They are going to get involved, and they got involved in a very major way. So, that is encouraging."

European stock markets soared Monday, with London's Financial Times 100 index jumping three percent. The CAC-40 in Paris climbed just over two percent, while the DAX in Frankfurt gained nearly two percent. Asian markets posted modest gains.

In the United States, banks tightened⁸ lending conditions, in part, following a dramatic rise in defaults on risky⁹ home mortgages as part of an overall depressed¹⁰ housing market. A prolonged credit crunch¹¹ would be a severe blow to the nation's financial health and the world economy, constraining¹² consumers and businesses alike that rely on loans to finance purchases and other activities that contribute to economic growth.

Meanwhile, the U.S. Commerce Department reports consumer spending at a healthy level, with retail¹³ sales rising 0.3 percent in July, led by sales in clothes, furniture and electronics. Consumer spending accounts for two-thirds of total U.S. economic activity.