Market Snapshot – Stocks Rocket Higher on Dovish Yellen

Stocks Higher But for How Long?

The stock markets have been higher over the past couple of days ever since Yellen dropped in her bearish comments which has hit the dollar hard but has helped the stock markets to move higher. We are seeing a situation where hawkish comments from the various central banks are driving the currencies higher and stock markets lower while any dovish comments are doing the reverse. This is due to the fact that as the central banks begin to change their rate policies, the interest rates, yields and bonds become attractive assets and this means that the funds are likely to get pulled out of stock markets and invested into these assets. Yellen is scheduled to speak today and if she continues to be dovish, then the markets are likely to go even higher but this is likely to be short lived as rate policy reversal from the central banks is here to stay.

Oil Prices Steady

Oil prices continued to be stable as it has been since the beginning of the week as the markets have survived the glut of supply by the increase in demand from China over the last couple of weeks. This has helped to keep the prices stable and the outlook for the prices continue to be positive as concerns over supply and inventory are likely to spread and this will be beneficial for the oil prices and it will help the traders to push the prices higher in the short and medium term.