Disappointment that the Bank of Japan did not unveil more measures to boost the economy as well as uncertainty over the course of U.S. monetary policy weighed hard on global markets Tuesday.
There had been expectations that the Bank of Japan, which started a big monetary stimulus this year to get the world's number 3 economy out of a two-decade stagnation, would announce new measures to ease volatility in the Japanese bond market. Instead the bank's policy board merely upgraded its economic assessment.
The disappointment was enough to send Japan's Nikkei stock index down 1.5 percent to close at 13,317.62. However, the retreat was modest in light of the previous day's 4.9 percent advance following an upward revision of first-quarter economic data. In tandem with the fall in equities, the yen made big gains _ the dollar was down 2 percent to 96.87 yen.
Despite the recent market correction threatening the four-year bull market, investors should be partying like it's 2006.
Easy-money programs from the world's central banks and a recovering global economy could push stocks and other assets higher. So why is the comparison to 2006 relevant?
September 2006 was two years before the collapse of Lehman Brothers and a 28% drop in the markets in the span of less than a month. And two years is about the amount of time we may have until the next great market crash.
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 22nd of April.
After Last Week's Fall, The Markets Take A Breather
The DOW continues to remain positive, while the NASDAQ and the S&P 500 are in a neutral state at the moment. Our Trade Triangles have signaled that if you are an intermediate-term trader, you should be on the sidelines for both of these markets.