After the surprise move by the Bank of Japan to extend its stimulus, Michael Hewson discusses the boost to stocks, the weakening of the yen and where we go from here.
- The S&P 500 rallied to all-time highs, just above 2024, even though the BoJ change merely cancels out the Fed’s final taper
- The tremendous jump in the Nikkei 225 to 17,000 has since shown a bearish engulfing candle, which may pose a risk to the rally if further gains are not seen
- In Germany, the DAX gapped higher, with some expecting the gap to be filled as we have not broken above the key 50DMA
- Crude oil continues to dip as Saudi Arabia put the squeeze on US shale producers, with WTI set to retest key support at $74 per barrel
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Video content by Michael Hewson of CMC Markets.