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

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About Author

Peter Bukov

Peter comes from a background in corporate finance which began in 2013 when he completed the Corporate Finance Program at the University of Economics in Bratislava. He’s been actively involved in the market sector since 2008 and got his hands-on experience in trading in 2011. His experience in finance and trading continues not only as a market analyst at Axiory Intelligence but also through his studies to obtain a degree in Capital Markets. The study is in line with MIFID II regulations and is under the supervision of the European Regulator ESMA, which strongly emphasizes ethics and morale in investing and working with a client.

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