Fed Announcement Boosts Stocks

Yesterday’s announcement that the Federal Reserve planned to spend $600 billion to buy government bonds and provide more liquidity helped boost global indexes to two-year highs.

“Financial markets have a fresh liquidity injection to fuel risk appetite,” said Graham Bishop, an equity strategist at Royal Bank of Scotland Group Plc in London. “There is now a real chance of a rally into year-end. The micro newsflow has again showed strength through the results season.”

Source: Bloomberg

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