With traders expressing optimism about the possibility of further stimulus, stocks may move to the upside in early trading on Friday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 22 points.
The markets are likely to benefit from news that the U.K. government and the Bank of England have announced additional measures to boost the credit and financial markets.
The measures will offer banks billions of pounds in cheap credit in an effort to stimulate lending while also providing access to short-term money to deal with "exceptional market stresses."
A note from Capital Economic said, "The measures should help to ease strains in the banking sector, but there are question marks over whether they will actually result in higher lending to the private sector."
Traders also continue to digest Thursday's report from Reuters indicating that central banks from major economies are prepared to take necessary steps to stabilize the financial markets after the Greek elections on Sunday.
Nonetheless, trading activity may be somewhat subdued amid lingering uncertainty about the outcome of the elections in Greece. The results of the elections will have a significant impact on whether the debt-plagued nation sticks to the terms of its international bailout.
The markets have also recently been presented with a report from the New York Federal Reserve showing a substantial slowdown in the pace of growth in regional manufacturing activity.
by RTT Staff Writer
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