Spreadex Market Update

Global markets rally after optimistic comments from the US and Japan



Most of the major indices are in the green today thanks to remarks from Fed chair, Jerome Powell, and the Bank of Japan, that painted positive pictures about their economies.

This has allowed the FTSE to climb 0.86%, while the DAX and CAC are both positive at 0.47% and 0.81% respectively.

Many economists are also leaning towards the sentiment that the impact of Omicron is not going to be that bad, and in fact Deutsche Bank’s chief UK economist said the impact “looks modest at most”.

This is further backed by the Bank of America who also thinks the impact will be “small.”

Yesterday, Fed chair, Jerome Powell, said in his Senate confirmation that the American economy is growing rapidly, and the central bank would do everything it could, to manage inflation before it becomes entrenched.

This pleased investors, lifting US markets into the green to end the day, and even allowed them to start positive today.

Crucially he did not provide any new details on interest rates, and said he believed the economy could handle tighter monetary policy.

However, US markets are currently flat, as the traders seem to be weighing up the implications of the recent inflation data releases.

Annual inflation in the US has jumped to 7%, which is the highest rate of price increases since 1982, giving the Fed a lot to think about with the upcoming changes to monetary policy.

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