The FTSEurofirst 300 index closed up 0.4% at 1,026.05 points. The Dow Jones industrial average jumped 0.09%, to 10,402.35. The Standard & Poor’s 500 Index jumped 0.22%, to 1,109.17. The Nasdaq Composite Index climbed 0.10%, to 2,243.87. The Nikkei jumped 276.89 points to 10,400.47. The Topix gained 2.3% to close at 909.75.

The US Federal Reserve decided to increase its lending rate from 0.50% to 0.75%. This was yet another sign that government is raring to let the financial markets survive by themselves. The harsh winter weather at the start of the year could have hit economic growth significantly in continental Europe. The economic turnaround in the region looks as though it has already lost momentum, the disturbance in the construction, retail and leisure industries is thought to be a large causing factor. Last year, Saudi Arabia’s oil exports to the US shrank below 1m barrels, however on the other hand China’s rose above that. The US has a lower demand for oil because of its lower energy consumption and also the fact America is relying on further imports from Canada and Africa. The drop in US demand for Saudi oil is the result of overall lower energy consumption but also greater reliance on imports from Canada and Africa.

By Greg Secker