Global stocks hit their highest in almost a year today as investors pared back expectations of when U.S. interest rates would rise, although a fall in bank shares after stress tests took the shine off European shares.
Two gigantic weeks are coming up. Up to bat first is Washington and Fed Chair Janet Yellen. The Fed knows it’s an absolute absurdity to raise rates in an economy that just created 38,000 jobs. But do you want to tell me they have their collective heads in the sand about an economy barely staying above water at 0.8% GDP?
The Nikkei fell over 4% overnight and has lost 19% from its mid-August high of 20946. The chart looks devastated and bound for additional losses. The gap lower suggests selling strength and the break below the early September low offers similar conclusions.
World shares tested record highs on Friday as hopes of more easy money from top central banks pushed Japan's Nikkei past 20,000 points for the first time in 15 years and European stocks reached similar heights.