Shares moved higher across most Asian and European exchanges today, but in the US things were more tepid. London rose sharply, with the FTSE up 1.59%, after the Bank of England both dropped interest rates (for the first time in 7 years) and unexpectedly increased its bond buying. The Global Dow Index gained 0.44%.
Oil prices rose for the 2nd day in a row, climbing $1 to $41.80/bbl. The US dollar index rose slightly, as the US seems to be the only major economy where interest rate increases, not decreases, are anticipated. Bond prices were mixed, mostly unchanged on the day.
Apart from ongoing earnings reports, US investors are now looking towards tomorrow's payrolls report from the Labor Department. With stocks having already benefited mightily from "multiple expansion," i.e. they are selling at very high price/earnings ratios, we're going to have to see actual earnings growth and therefore economic strength to justify further price increases. ... Log in or subscribe to continue reading.
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