Euphoria continues, stocks push higher again

Tuesday’s large decline has already been completely forgotten and erased, with US indices gaining another 0.5% on Thursday, continuing higher after Wednesday’s 2% gains.

Later in the session, the ECB minutes from its last meeting are due. The ECB was not so keen to provide additional stimulus, but it looks like the situation has changed.

A second-wave of coronavirus infections, hitting Europe in particular, has resulted in more restrictions, prompting fears of a further economic slowdown. ECB President Christine Lagarde said earlier this week that the ‘second leg’ of what policymakers had hoped would be a V-shaped recovery looked ‘shaky.’

Her comments could be interpreted as dovish, and it might lead to a further stimulus by the ECB as soon as possible. 

Basically, it doesn’t matter how weak the global economy will be and how many unemployed people there are. As long as central banks and politicians keep flooding the markets with free money, stocks will always go up.

Investors will also focus on US jobless claims, where a little improvement is expected this week. 

Source: https://www.axiory.com/market-news/euphoria-continues-stocks-push-higher-again