As expected in the wake of post-FOMC positive reaction elsewhere
- FTSE +1.6%
- DAX +1.9%
- CAC40 +2.3%
- FTMIB +1.6%
- IBEX +2.0%
A few readers are rightly asking why the US interest rate hike is giving a boost to equity markets when the traditional correlation is the reverse, but there was no shock element this time.
The move was well signalled so markets had time to evaluate prior. I don't share their optimism on economic recovery but neither do I see interest rates flying much higher so the need for an equity market sell-off/crash anytime soon although I do prefer to sell rallies still.
