Markets Rebound

North American stock markets rebounded from the week’s massive drop late Thursday after traders put cash in to markets by buying stocks that had sunk to attractive lows.

A trading practice known as short selling was also banned for certain shares by four European countries. The practice is believed to have been responsible for the sharp decline in shares of French Banks on Wednesday.

The S&P plummeted 1100 points in three days last week including a 520 point single day loss on Wednesday. 

The US market welcomed the news that less Americans were joining the unemployed than predicted.

Gold hit a record high Thursday of $1800 an ounce.

A veteran trader has said that investors are scared of being the last one out in the event of a market downturn and the last one in if the market resurges. This fear makes it easier to sell than buy and hampers the growth of the market. Many traders cautiously remember 2008.

Short selling is the act of borrowing against an asset and selling it later on the assumption that profit can be made after the loan is paid off. The ban came a day after what the head of the Bank of France called “unfounded rumors” caused shares to drop sharply around the country.