The Dow ended the Tuesday up 0,47%, and the S&P 500 added 0,76%. The key now is the U.S data, and any missing of data will change the game. The bounce in Nikkei led the investors to bid up the safe-heaven yen, with the dollar dipping to 101,36 yen from an early top of 101,77.
Nikkei rose 1,2% today, and it was far away from testing the 200 MA. The index has shed 14% so far in 2014 and rose 50% in 2013. In Japan they are concerned about the Fed tapering and I assume that Japan knows everything about QE.
Europe is up followed by good news from Euro zone Composite PMI, which measure business activity across thousands of companies and tells investors about the economic health. It climbed to 52,9 in January (previous: 52,1). That was the highest reading since June 2011. Great! These numbers tell us the recovery of the 18-member block is broad-based.
Good economic data helped the Euro zone to break a three-day run of losses on Wednesday. It helped the investors nerves, before the ECB`s monthly meeting on thursday.
Federal Reserve is lowering the stimulus that helped the equity`s to gain 123% the last four years. S&P 500 rose 173% from the bottom in 2009. That is a bull market that is a year older than the average since World War II.
Economists are more bullish now than 2011 when the S&P 500 was on the brink of a bear market. IMF raised its global growth projection to 3,7%. That`s up from October estimate of 3,6%.
|08:15:00||ADP Non-Farm Employment change||Forecast:||191K||Previous:||238K|
|10:00:00||ISM Non-manufactoring PMI||Forecast:||53,6||Previous:||53|
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