LONDON, Dec 21 — European and US stocks traded higher today and the yen steadied after its biggest daily gain versus the dollar in 24 years following a shock Bank of Japan tweak to monetary policy.
“The stock market was primed to jump on any whiff of news that was better than feared, better than expected, or simply good,” said Patrick J. O’Hare, of Briefing.com. It was seen as a precursor to a possible interest rate hike next year, finally bringing the central bank in line with others around the world.
“It would be safe to assume that the BoJ shift will likely fuel further yen strength on repatriation flows as local bond yields rise,” noted Stephen Innes of SPI Asset Management.‘Welcome relative calm’ “The relative calm in equity markets is a welcome relief for investors who have been shellshocked too many times to count in one of the worst years for stocks and bonds in more than a decade,” said Innes, of SPI Asset Management.