US, eurozone economies show strong signs of recovery

The global economy is apparently seeing the light at the end of a long tunnel 3.5 years after the bankruptcy of U.S. investment bank Lehman Brothers. The eurozone`s fiscal crisis has hit bottom and the American, German and Japanese economies are on the recovery path.

The Standard & Poor`s 500 Index topped the 1,400 mark for the first time in nearly four years Thursday, closing at 1,402.60 on the New York Stock Market. With the stock rally, the three major U.S. stock indices -- the S&P 500, the Dow Jones Industrial Average and the NASDAQ Composite Index -- returned to pre-2008 crisis levels.

U.S. business channel CNBC said "It was also the first time in market history the S&P closed over 1400, the Nasdaq above 3000 and the Dow over 13000." NASDAQ reached 3,000 for the first time in almost 12 years Tuesday.

Employment conditions are also improving. The number of unemployment benefit applications announced Thursday also hit its lowest level since March 2008.

Europe is also seeing favorable recovery signs. Eurozone countries approved a second bailout plan worth 39.4 billion euros (51 billion U.S. dollars) for Greece on Wednesday, and the International Monetary Fund passed another rescue plan worth 28 billion euros (36.6 billion dollars) for the eurozone Thursday. Italian treasury bonds, which topped the critical level of 7 percent last year, recently fell to the 3-percent level. With the German economy continuing to grow as well, EU stock markets saw significant gains.

In Japan, which is recovering from the March 11 earthquake last year, the benchmark Nikkei 225 index recovered to the 10,000 level for the first time in seven months Wednesday. With the yen`s value falling to 80 against the greenback, a virtuous circle of export rally, stock price increases and economic recovery is expected.

witness@donga.com changkim@donga.com