After the Federal Reserve Jerome Powell announced that interest rates would remain unchanged for a long time, it eased concerns in the financial markets that higher inflation would make the central bank tighten monetary policy. As a result, Asian stocks rose on Tuesday.
On the following day of the Washington's testimony, Jerome Powell vowed to put the U.S. economy back to its former form and return to full employment. Chief investment strategist at Mitsubishi UFJ (NYSE: MUFG) Morgan Stanley (NYSE: M.S.) Securities. Norihiro Fujito said that Powell explained it would take three years to achieve its inflation target, reaffirming that the Fed would not raise interest rates until 2021. "A huge amount of cash investors have to work is flowing into the stock market, and that is more than offsetting any negative aspects of higher bond yields," he added. As a result of the Fed's signal, USD languished near three-year lows as a safe currency against the riskier ones in the currency markets.
As for the oil, After the U.S. government data showed a drop in crude production that followed last's week's windstorm and frost, oil climbed up to a 13 months high.
Johnson & Johnson stock rose by 1.3% after the vaccine against the coronavirus appeared to be safe and effective. This week company applied for emergency use authorization.
GameStop (NYSE: GME) shares went up massively by 83.3% on Wednesday. Experts believe it may signal a new frenzy into old economy shared, building on a gain of 103.9%.
As companies are expected to report their quarterly earnings in Europe, experts will focus on German pharmaceutical giant Bayer (OTC: BAYRY), French insurer AXA (PA: AXAF), the world's largest brewer Anheuser-Busch InBev, French water management company Veolia (PA: VIE), and Spanish telecommunications company Telefonica (NYSE: TEF). Due to the data released in the morning, German consumer confidence has improve