(as of 7:00 AM PST)
Global markets soared overnight led by the Japanese Index, up over 7%. Shanghai and Hong Kong followed the Nikkei higher and the hot rally spilled over to Europe with indexes up as much as 2%. The reason for the two day torrid rally is a mystery but speculation is that expected further financial stimulus in China is a major factor. Japan's surge seems to come from comments by the government that corporate tax rates are to be cut substantially. US markets joined the bandwagon initially, but are giving back some gains as the morning wears on. All eyes are on Apple today as a much anticipated new product announcement in scheduled for later this morning. The extreme volatility of the last month might encourage the Federal Reserve to raise interest rates at the upcoming meeting, which might throw water on this emerging rally. Oil is giving back gains on a glut of supply and weak demand projections, down over 2%, while gold is down mildly likely due to a surging US dollar. Mortgage rates continue to look very attractive with the 30 year rates under 4%.
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