The U.K stock market was unusually down at 10^th of this month as Bank of England (BoE) refrained from increasing interest rates. In between, the position of the euro was unstable once again due to the deepening of the debt crisis in the euro zone owing to poor debt management plan.

The FTSE 100 index of the top U.K companies slipped .9% due to the BoE’s decision. Also, the value of the pound dipped .3% at $1.6063.

There have been rumors in the market that the BoE can possibly increase rates. The fact that the pound fared well against the dollar was basically due to this speculation. The possibility of higher rates allured the investors to the pound because of the better chances of return on interest bearing investments.

Probably, the rates won’t rise for the time being. The B0E’s quarterly economic forecast will be out pretty soon and there are high chances that it will predict a dwindling inflation rate. Therefore, the BoE is keeping its fingers crossed. Since there are high chances of growth in spite of the recent economic contraction in the U.K and inflation can decline for good, the BoE will possibly maintain a status quo for the time being. Currently, a lot of guesswork is being done on the growth rate and inflation. As the situation becomes clear, the BoE will decide if there is any need to raise the rate which is at a historical low of 0.5pc right now.

Amidst this development, the euro suffered another setback owing to the debt crisis in Portugal. The bond yields soared again in Portugal on 10^th January this year and the euro fell by .7% to $1.3630.Germany’s DAX also underperformed by being .4% lower. Even the possible chances of a merger between New York Stock Exchange and Deutsche Boerse did not help. This trend was also visible in Asia where Japan’s Nikkei 225 stock average dropped .1% to 10,605.65. Hang Seng index in Hong Kong also slipped 2% to 22,708.62. Worried by the developments in the continent, the Central Bank in China increased interest rate a number of times recently.

The downswing in Europe and the U.K in particular, was preceded by a slump in the Wall Street. Standard and Poor’s 500 futures declined .6% to 1311. Federal Reserve Chairman Ben Bernanke commented that he was contemplating austere fiscal policies to remedy the situation.

The 2nd largest US bank JPMorgan has announced that profits have risen for the first time since 2007.  This has beat all estimates from analysts putting a smile back on investors faces.

Second quater earnings had increased to $2.7 billion, which is 28 cents per share.  Compared to $2 billion, 53 cents per share a year earlier.

14 analysts who surveyed the company estimated an average price share of 5 cents a share a while back.  Investment banking revenue from trading and stock and bond underwriting is helping offset rising defaults on consumer loans, such as mortgages and credit cards.  This has allowed Jamie Dimon (CEO) to post net income during every quarter of the US recession that started back in 2007.  JPMorgan is the only bank within the nations top five to manage that feat.  Lets hope the others are soon to follow.

Charles Bobrinskoy who is vice chairman of Ariel Investments in Chicago said “This is a real tribute to Jamie Dimon” in a recent television interview.

JPMorgans 15 percent gain this year on the New York Stock Exchange is the 2nd best performance in the 24 company KBW Bank Index just behind State Street Corp.  The stock climbed 4.5% to $36.26 in composite trading yesterday.

The bank has made $1.47 billion in profit which has quadrupled since last years 2nd quarters earnings.  The boost in profit was from fees from underwriting stock and bond deals and fixed income trading. 

Goldman Sachs Group Inc recently said on july 14 that it made $3.44 billion in the quarter from trading and underwriting stock.  Revenue was up from $9.43 billion last year to $13.8 billion this year ending month June 26.

Among the most powerful and popular financial institutions across the globe is the stock market. Since this is the place where billions of money is being exchanged, many people are interested to know about the stock market history. This is not only significant for students or the people of the United States but this is also helpful for those who want to be involved in this market. Actually, the U.S.’ stock market history began over two hundred years ago.

It all started when the government of the United States funded the wars using bonds. These bonds were put up for sale to those individuals who wanted to make an investment in the country and with that they will be able to get some returns. Because of this strategy, new banks were able to grasp the idea and they thought that they should try doing the same thing. Private investors were the ones who participated in the funding and the banks sold a part of their ownership.

In 1792, the stock market history began to get more interesting as 24 merchants held a gathering on Wall Street. These people all had varied securities and stocks and they are all eager to exchange them for investment purposes. At the end of the meeting, they all agreed that they will meet each day so that they can continue trading. That was the highlight of the US stock market history.

When the 1800s came, more and more people participated in the stock market. It grew quickly and then it became a very powerful showground. Many companies started to invest as well and the government saw this as a way to fund for the country’s development. Thus, they turned to selling stocks for their endeavors. In this part of the stock market history, the New York Stock Exchange department became very significant.

In 1929, however, the stock market history began to show its descent. This was considered as the darkest period for the market. More than 100 billion dollars were lost on the part of the investors. Still, the stock market found ways on how it can stand erect once again. As we can see now, it has definitely reached new heights. This is yet another remarkable chapter in the stock market history.