Broader markets were put in an explosive mode on strong US corporate earnings that exceeded expectations. The results signaled global recovery could be accelerating, boosting confidence and increasing investors’ appetite for risk. The dollar index hit a 3 years low at 73.79.
The euro jumped to a 16 month high at 1.4640 although the German confidence dropped in April more than expected. Meanwhile, the pound rose to the highest since December 2009 at 1.6562 after meeting support from the surprise increase in the UK retail sales in March.
The Australian surged to the highest in 29 years driven by the new record high seen by gold today at 1508.05 dollars and by the its attractive interest rate. Commodities were pushed higher by the dollar’s decline. Oil jumped above the 112 dollars per barrel, the highest since 2008, on believes the US recovery will boost demand.
European and Asian stocks rose today despite the yen gaining strength and moving towards its stronger parts of its range. Investors are ignoring the warnings about the large deficit in the US, the financial risks in Europe, the crisis in Japan, and the threats imposed by the rising energy prices.
The difference between short term perspectives and long term outlooks continues to spur volatility bringing a series of record breakings, which could spur profit taking. Today is the last full day of trading until Tuesday as markets begin to close for Easter from Friday.
Originally posted here
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