Indices across the board rose against the low yen, the Chinese benchmark rates and traction in the euro.
Japan 225 [Nikkei] was up on Friday to 17559.40, reported by the BBC Radio 5 Wake up to Money programme as tracking on a 40 year high. Other indices reacted similarly as stocks found investors:
Dow up +0.51% at 17,810
S&P 500 up +0.52% at 2,064
Nikkei 225 up +0.33% at 17,500
Hang Seng up +1.95% at 23,894
As the major countries of the world lay their stimulus programmes on the table;
China announced the news of interest rate cuts to head off deflation as figures confirming a slower growth in the People’s Republic were reported.
In Europe Marios Draghi, President of the European Central Bank, stated that he is also committed to fighting deflation and suggesting that the much-rumoured sovereign bond buying programme could start soon.
These followed reports Japan’s technical recession, called last week, and Japan’s Prime Minister Shinzo Abe postponing of a second tax hike, dissolving parliament and calling snap elections in mid-December. Japan will also see a series of purchasing programmes of bonds and exchange-traded funds, plus readjusting economic projections.
The result of the volatility and falling currencies is the raising of stock reflected in the benefits gained by Asian and US exchanges.
Chart from MT4: Japan 225 [Nikkei]
Chart from MT4: Hong Kong45 [Hang Seng]
Chart from MT4: USA 500 [S&P 500]
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