Market Update: Accommodative policies to continue — US and Asian markets up, Europe more hesitant – 15.11.2013

Source: Henderson Global Investors

Major US stock indices ended Thursday’s session at new highs (Dow Jones 0.4%, S&P 500 0.5%). Janet Yellen’s confirmation hearing before the Senate Banking Committee provided the necessary spark reversing an earlier downward trend on mostly weak economic data. Striking a dovish tone, the prospect of continued monetary stimulus was cheered by the markets.

Asian markets took comfort overnight from earlier US developments ending the week on a high note. Japan’s Nikkei 225 continued its week-long rally; the index rose 2.1% to its highest level in six months, crossing the 15,000 barrier. Mainland China also registered positive gains as the Shanghai Composite rose 1.7% helped by rumours that the government will release details on market reforms in the next few days.

Stock markets are not displaying as much excitement in Europe this morning. European bourses are barely changed (FTSE Eurofirst 300 was up 0.1% at the time of writing) as worries about the outlook for growth in the region weighs. The FTSE 100 index has inched up 0.3% at the time of writing. With the earnings season drawing to a close, investors are focusing on economic data from the US and Europe due later today.