Global Equities Market In a rare split decision, the Bank of Japan (BOJ) stunned the global financial markets today by expanding its massive monetary easing as the central bank announced plan to accelerate purchases of Japanese government bonds at an annual pace of 80 trillion yen (up by 30 trillion yen) . The BOJ will also increase its $1.2trillion pension funds holding of stocks as well as triple its exchange traded funds and real estate investments. The benchmark Nikkei stock index spiked to a high of 7.34% WoW, supported by monetary stimulus amid speculation that the countrys $1.2 trillion government pension investment fund will increase holdings in equities. The US stocks rose this week; boosted by a strong reading on economic growth and series of upbeat earnings reports. The Dow Jones industrial average rose 3.33% while the S&P gained 2.43% WoW respectively. Euro zone equities markets rose this week amidst optimism that the Bank of Japans stimulus will fill some of the gap left by the end of the US Federal Reserve bond buying. The Stoxx Europe 600 index gained 2.45% while the FTSE added 2.31% as investors continue to weigh the impact of US end of QE and Japans increased stimulus package. Emerging market stocks advanced as investors sentiments improved on US growth, Japans record stimulus, bouncing oil prices and good results in many markets. The MSCI Emerging market added 2.35% while the MSCI Frontier index advanced 0.28%. China, India and Brazil benchmark index gained 4.92%, 3.84% and 2.49% respectively.
Posted on: Mon, 03 Nov 2014 08:24:38 +0000
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