Marked with the U.S. and European markets closed higher on Wednesday (07/17/2013). Japanese stocks also opened higher today, Thursday (07/18/2013)
“Ben Bernanke back calm the markets,” as written in the recommendation HP Business Analytics received today, Thursday (18/07/2013).
Described, Bernanke assured the market that the purpose of the stimulus is the central bank to keep interest rates low. In addition, to encourage lending.
The schedule for the dismissal of bond purchases is expected at the end of the year is not a statute, so that could change as the development of the U.S. economy.
“It was received positively by the market as a sign that bond buying is likely to continue. Obligates 10-year government yield back down to a level of 2.491% after Bernanke’s remarks. “
The central bank also announced that the U.S. economy showed moderate levels of growth in the manufacturing and service sectors showed growth, stable consumer spending, and the property and construction sector showed steady growth.
The U.S. Commerce Department reported Wednesday that new home construction fell 9.9% MOM in June from the previous month Mai grew by 8.9%, to 836,000, the lowest level since August 2012. But the decline in the market is again considered as a sign that the stimulus will continue.
Ben Bernanke’s statement also returns to calm investors in Europe. While the Monetary Policy Committee Bank of England (BoE) meeting in early July record results released Wednesday states agreed to keep interest rates and the asset purchase program. The interest rate is maintained at a low level 0.5% while the QE program unchanged at 375 billion pounds (USD566 billion).
Japanese stocks open higher, and still caused by positive sentiment from Bernanke’s statement, as well as Toshiba Inc shares rise by 4.2%.