Stimulus Prospects Ease Economic Uncertainty

Traders positive sentiment returns on Tuesday after Japan’s election results showed Prime Minister Shinzo Abe’s Democratic Party,  emerged victorious from parliamentary elections. Abe has promised ‘bold stimulus’ policy  to help aggressively jolt Asia’s second-biggest economy back to life. While BOJ released some details, investors are betting Abe will continue flooding the markets with money using newly printed money.                                                                          Nikkei 225 gained 2.46% at 16,095. Japanese Yen rising to 103.72 gaining 220 points since Monday.

Japan quantitative easing forecast is pulling other indices higher, The DAX added 1.53% trading at 9972.25, S&P 500 gained 0.48% trading at all time high 2139.75, FTSE 100 adding 1.14% trading at 6683.

Gold bounced back after economic concerns ease due to Japan’s election results and Theresa May taking over Britain’s new prime minister. Gold is trading at 1347.25 down 0.49% for today’s session.

The fresh political certainty supports the British pound against the US dollar, GBP/USD added 1.22% trading at 1.3144, the pound also strength against the Euro and trading at 0.8433.