What a great day, European stock markets rose Thursday, of course the main factor boosted by the U.S. Federal  Reserve saying it would likely keep interest rates low until at least  late 2014. And then London's FTSE 100 Index rose by 0.4% at the open, the DAX in  Frankfurt gained 0.6% and the CAC-40 Index in Paris was 0.6% higher.We expect can be more ariseAs we knew that previously the Fed had said it expected the period of exceptionally  low rates to last until mid-2013, so an extension of the low-rate  environment should see market participants increase their appetite for  risk, said Capital Spreads. On Wednesday, the Fed's comments helped the  Dow Jones Industrial Average finish up 0.7% to 12758.85 and the Standard  & Poor's 500 index to end 0.8% higher at 1326.06.
Positive signal is spreading to all over market sentiment, Capital Spreads also noted that traders are also likely to jump on Fed chairman  Ben Bernanke's comments that "there is a case for additional policy action" as a possible nod towards a third round of quantitative easing. This act really helping the market
"With the 'elevated' unemployment rate and 'subdued' inflation rates  in the U.S. running counter to the Fed's statutory mandate of maximum  employment and price stability, some traders may see [Mr.] Bernanke  needing to give the economy an extra nudge to maintain the recovery,"  added Capital Spreads. This is because no major economic events in Europe, markets will keep an eye out  for further reports regarding the Greek debt-swap agreement.  Additionally, an Italian bond auction later in the day should also  indicate market opinion toward the euro-zone 'periphery.' In the U.S.,  jobless claims and durable-goods orders are both due to be published at  0830 ET. After that, U.S. leading indicators and new home-sales data  will both be released at 1000 ET.
No comments:
Post a Comment