Optimism All of a Sudden

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Optimism All of a Sudden
Optimism All of a Sudden

Optimism All of a Sudden

The optimism was suddenly experienced on Wall Street where investors got some sort of relief in terms of the uncertainty they had in their minds due to the government shutdown deadlock. The SP500 index rose by nearly 0.4% on Wednesday where the U.S. lawmakers are apparently being convinced to raise the debt ceiling for now, as the consequences of not doing it could be disastrous for the U.S. economy.

Whereas, on signs of tapering are seen so far by the Federal Reserve and also the unemployment rate and NFP figures are not being released this week so investors could get some time to revamp their strategy considering the government shutdown problem for now only.

What’s her Plan?

Moreover, the U.S. Federal Reserve might see a newly appointed Chairman in a couple of months as Mr. Ben Bernanke’s term is ending in December. And that new chairman could be the Janet Yellen who apparently is being nominated by the U.S President himself. Janet Yellen is said to be carrying along the quantitative easing stimulus plan that Mr. Bernanke started last year and tapering might become another unrealized action anytime soon.

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Asian Markets Mixed

The Asian stocks are playing in a wider range where they recovered their yesterday’s losses earlier today in the Asian session, as the health care industry shares gained, but on the other hand the energy sector and materials producer companies witnessed a slight decline in their share prices.

However, today these stocks might perform well as the Core machinery orders along with the tertiary industry activity in the Japanese economy improved drastically the past month against their previously recorded figures.

Stocks in Asia

The world’s biggest mining firm – BHP Billiton Ltd – dropped by 1 percent and closed at its lowest level in the past 2 months period; while the drugs and medical equipment producer Alfresa Holdings Corp managed to gain a healthy 3.7% value in their stock prices in Tokyo. In short, the overall Asian markets are playing in a range where they are currently hovering at their resistance area and are near to have a bullish breakout.

To contact the reporter of this story: Jonathan Millet at john@forexminute.com