Monday, October 5, 2015

Economic Journal - Monday, 10/5/2015


(As of 7:15 am PST)

Stocks are rallying across the globe Monday, with US equities extending their gains from Friday. The stock market’s reversal Friday was the biggest in 4 years, as investors re-evaluated their expectations of a Federal Reserve rate hike on the heels of a surprisingly weak jobs report. It seems the market’s expectation heading into this week is for rates to remain near the zero bound for the remainder of 2015. Asian markets began the new week on a positive note as investors picked up where Wall Street left off on Friday. An economic downgrade from the World Bank of China also helped to lift Chinese stocks as investors speculated future stimulus programs. European indexes are soaring across the board today. Gold and oil prices are higher today while interest rates are up slightly. It’s too early to tell if this rally will last or if it can be attributed to short-covering and market momentum as many strategists are today suggesting. However, with earnings season unofficially kicking off this week, some positive reports may be enough to spark a year-end rally.

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