European markets cheer Paulson?

Stephen Beard May 31, 2006


MARK AUSTIN THOMAS: After yesterday’s losses, European shares have regained their poise this morning. From London, Stephen Beard says it may have something to do with Bush’s nomination of Henry Paulson to be US Treasury Secretary.

STEPHEN BEARD: Dealers and commentators here have generally welcomed the appointment of Henry Paulson. His predecessor John Snow did not inspire widespread confidence.

But Paulson, as one of Wall Street’s top investment bankers, is admired — mostly for his understanding of financial markets, says fund manager Justin Urqiuart Stewart.

STEWART: At a time when markets are feeling nervous, they need some confidence. They want to know that there’s someone of experience and authority taking control. And certainly the reaction so far has been extremely positive.

European markets accordingly steadied this morning. But the future path for US interest rates is far more important. Investors here are now bracing themselves for the publication this afternoon of the minutes of the Fed’s latest meeting.

In London this is Stephen Beard for Marketplace.

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