The sentiment in financial markets has been pretty negative for about two months and we have mentioned the reasons many times. Brexit, Italian 2019 budget deficit and international trade war have hurt the market sentiment recently. But last night, we saw a reversal in sentiment, as stock markets moved higher.
The Dow Jones industrial average was up 1%. The S&P 500 also gained just over 1% while the tech stock revival left the Nasdaq 1.7% higher.
On the economic data front, the Bank of England said interest rate hikes would still be “gradual”. However, indicated that it would need to raise rates to 1.5 per cent over the next three years to keep inflation under control.
Meanwhile, Australia’s Retail Sales for the month of September came in at 0.2%. This was below the 0.3% forecast.