Friday, October 23, 2015

Wall Street rallies on earnings and ECB

FXStreet (Guatemala) - U.S. stocks jumped on Thursday with the S&P 500 index hitting a two-month high on stronger-than-expected corporate results from companies including McDonald's and cues from the European Central Bank about extending its stimulus program.

The Dow Jones industrial average rose 1.87 percent, to 17,489.86, the S&P 500 pulled off 1.66 percent of gains, to 2,052.55 and the Nasdaq Composite added 1.65 percent, to 4,920.05 by the close.

Earlier in the shift, the S&P 500 and the Dow was gaining to 9-week highs and were positioned for their best month since October 2011 on the back solid corporate results and a dovish European Central Bank who hinted that further easing will come in December meeting.

Draghi's press conference left the door open for expanding the stimulus program beyond 2016 while he is concerned about headwinds from China and emerging markets who are compromising much of the domestic growth in the EZ while their policy is having its intended effect otherwise, but the economy may need more to boost euro-zone growth and bring inflation closer to 2 %.

What is QE?

Meanwhile, data was positive in the US and all goes towards the case for a rate hike in December, while otherwise, markets have been pricing out a hike until some stage in 2016 on dovish sounding FOMC minutes of late.

The unemployment claims rose below the 265,000 expected by 3,000 to 259,000 last week and existing home sales also beat expectations to an annual rate of 5.55m for September.

EUR/USD dropped heavily closing over -2%
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