Risk-on sentiment continues to dominate global financial markets today, driven by widespread monetary easing and a significant boost from China’s latest stimulus measures. US equities finished strong overnight, with all major indexes posting gains. S&P 500 hit a fresh record for the third consecutive time this week. Meanwhile, Germany’s DAX also surged to an all-time high. In Asia, stocks in Hong Kong and mainland China skyrocketed as China's stimulus measures began to take effect. The injection of liquidity and supportive policies have renewed confidence among investors, leading to significant rallies in these markets. The currency markets mirror this risk-on environment. Kiwi and Aussie are the week's biggest winners so far, followed by Loonie. On the opposite end of the spectrum, Japanese Yen has been the weakest, followed by Dollar and Euro. Swiss Franc and British Pound are trading in mixed in the middle. Today’s releases of Canadian GDP and US PCE inflation data are not expected to significantly alter these standings.... |