Despite Friday’s non farm payroll-inspired losses, U.S. stocks are still looking strong from both the fundamental and technical points of view. The latest U.S. jobs report has shown that the labor market is continuing to improve at a solid pace, which bodes well for the economy as a whole.
One central bank ends QE, another increases it. This is not a trick, but a treat for the markets. The global equity markets found additional buoyancy on Friday after the Bank of Japan surprised the markets overnight by expanding its monetary easing program to about 80 trillion yen a year, up from Y60tn-Y70tn previously.
The Q3 earnings season started this week, with some key U.S. companies reporting their latest figures. By the end of last week approximately 20% of the companies on the S&P 500 had reported results, so far, the news has been good.
U.S. stock-index futures declined, with the Standard & Poor’s 500 Index (CME:SPZ14) poised to drop a second day, amid further signs of slowing growth in Europe and as investors await corporate earnings reports to assess the strength of the American economy.
On Friday, the Nikkei index managed to make back some of the losses from the previous session when the global markets had tumbled. Ahead of the weekend, this was undoubtedly due to short-covering and also some "bargain hunting."