European stocks following Wall Street!
Yesterday and after positive US weekly Jobless claims number and the poor 30-year auction in line with US 10-year Treasury Yields falling back towards 1.63%, Stock markets found enough reason to rebound the most of earlier losses. And now, after the excellent performance of the US and Asian stock markets, it is European turn to show their strength.
Yesterday, Dow 30 closed 1.29% higher, SP500 gained 1.22%, and Nasdaq achieved 93.31 points. Asian trading hours helped the Nikkie 225 to close 2.32% higher, while Shanghai and Hang Seng respectively gained 1.77% and 1.11%.
For now, while positive sentiment pushing the prices higher in the stock markets. However, even if FED officials do not take it seriously, it is naive to say that investors forgot about inflation risks. The gain in the European stocks also mainly came after US and Asian rallies, while in Europe, at least for now, there is not much fear about inflation, as it is in the US.
Based on FOMC members` speeches and what they said, price pressures from the reopening of the economy would prove transitory, and Federal Reserve will not change its "ultra-easy" monetary policy anytime soon.
In the FX market, EURUSD returned from 1.2130, GBPUSD trading stable in the range of 1.4030 and 1.4070. The yen is getting stronger against most currencies. USDJPY trading 0.10% lower at 109.35. Commodity currencies mostly traded higher against their crosses, USDCAD trading at 1.2136, AUDUSD higher at 0.7740, and NZDUSD have seen at 0.7705.
