(As of 7:00 am PST)
Stocks are soaring at today’s open with US indexes up
over 1% and on pace for another week of gains. A surprise rate cut from China’s
central bank along with dovish comments out of European Central Bank President
Mario Draghi, helped to send global equities higher to close out the week. The
People’s Bank of China announced today that it cut its key lending rate by 0.4%
to 5.6%. The rate cut was the first of its kind in over 2 years for China, as
the central bank moves forward on efforts to strengthen economic growth in the
region. Asian markets responded positively, with stocks rallying to finish
week. Optimism carried into the European open. Investors applauded the China
news along with comments from Mario Draghi that the ECB would step up its
stimulus programs in an effort to see inflation pick up to the central bank’s
target. European stocks soared, with most indexes up well over 2%. The risk
trade is on today with commodity prices higher as well. We haven’t seen a move
like this in several weeks, with indexes breaking out to new records. Could the Santa Claus rally be under way? We’ll
find out as we head into a jam packed holiday shortened week next week.
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