Markets are basically going nowhere this morning.This follows a huge rally yesterday for both Europe and the US, which saw the Dow gain over 200 points on strong econ data, a temperate Fed outlook, and the release of stress test results that saw most banks pass, and several banks crank out new dividends.
The strong rally continues overnight in Asia, but in Europe and the US it’s very quiet. Italy is up a bit. US futures are down a touch, and so on.
The dollar continues to look strong particularly against the yen, and gold is weak again.
UPDATE: After a slow start, European markets are now setting up another huge rally. The DAX is up +1.04% and the CAC 40 has jumped +0.75% on the day.
U.S. futures have also moved higher in the last few hours.
The financial news media is crediting U.S. bank stress tests for this—the Fed said yesterday that 15 of the 19 largest U.S. financial firms would be able to survive an “extremely adverse” financial shock.