Central Bank Expectations and Statements Push Indices Higher
May 21, 2014 7:50 pm
May 21, 2014 – Indices news
Some Asian markets have fallen amid a decision by the Bank of Japan to refrain from further quantitative easing. The end result of this decision was that the yen appreciated – hurting the overseas income of Japanese companies and consequently bringing equity prices down. Chinese and Australian markets have fared a little better, with companies like Great wall Motor Co. and Treasury Wine Estates advancing. At closing, the Nikkei was down 0.24%, the Hang Seng was up 0.01%, and the ASX 200 was up 0.08%.
European markets climbed for the first time this week as Euro area confidence data came out better than expected. Indices in Europe also are benefiting from bullish sentiment stemming from expectations that the European Central Bank will use quantitative easing to combat deflationary pressure on the euro. Many investors feel the Eurozone will outperform the US in the coming weeks. Today, the Stoxx 50 was up 0.73%, the FTSE was up 0.28%, and the DAX was up 0.61%.
American markets are also climbing today. The main source of optimism has been the FOMC Meeting Minutes, which noted that fed officials did not feel that central bank’s stimulus policy posed an inflation risk. Furthermore, they noted that the interest rate will remain low for a while and that the stimulus will be cut entirely if the labor market continues to improve. In essence, nothing new has been said regarding US monetary policy, but investors have been reassured. The Dow is up 0.93%, the S&P is up 0.8%, and the Nasdaq is up 0.87%.
May 21, 2014 – Indices news
Some Asian markets have fallen amid a decision by the Bank of Japan to refrain from further quantitative easing. The end result of this decision was that the yen appreciated – hurting the overseas income of Japanese companies and consequently bringing equity prices down. Chinese and Australian markets have fared a little better, with companies like Great wall Motor Co. and Treasury Wine Estates advancing. At closing, the Nikkei was down 0.24%, the Hang Seng was up 0.01%, and the ASX 200 was up 0.08%.
European markets climbed for the first time this week as Euro area confidence data came out better than expected. Indices in Europe also are benefiting from bullish sentiment stemming from expectations that the European Central Bank will use quantitative easing to combat deflationary pressure on the euro. Many investors feel the Eurozone will outperform the US in the coming weeks. Today, the Stoxx 50 was up 0.73%, the FTSE was up 0.28%, and the DAX was up 0.61%.
American markets are also climbing today. The main source of optimism has been the FOMC Meeting Minutes, which noted that fed officials did not feel that central bank’s stimulus policy posed an inflation risk. Furthermore, they noted that the interest rate will remain low for a while and that the stimulus will be cut entirely if the labor market continues to improve. In essence, nothing new has been said regarding US monetary policy, but investors have been reassured. The Dow is up 0.93%, the S&P is up 0.8%, and the Nasdaq is up 0.87%.
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