Dow Jones at historic high

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Dow Jones at historic high

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The Dow Jones Industrial Average hit an all time record as soon as the opening bell rang at the New York stock exchange on Wednesday.

The rally continued from Tuesday’s best session ending since October 2007 – just before the financial crisis.

On Wednesday Wall Street investors were encouraged by the latest US jobs figures which showed hiring by companies rose strongly last month – with 198,000 new posts created.

They were buying based on signs of a strengthening US economy, continued stimulus support from the Federal Reserve, and the fact that – compared with other investments – shares represent relatively good value.

Europe’s stock markets are also at their highest since before the financial crisis on Wednesday helped by the US situation and expectations of more stimulus moves by major central banks – the ECB, Britain’s Bank of England and the Bank of Japan.

The Dow closed at an historic high on Tuesday as major world stock markets rallied after China pledged record government spending to boost growth.

Data also suggests the US service sector is expanding at its fastest rate in a year.

The recovery in share prices suggests investors are regaining confidence in the US and world economies following the financial crisis and global recessions of recent years.