The much anticipated Fed meeting failed to provide any direction on the potential tapering this year. Powell’s statement that tapering would be conditional upon economic outcomes boosted the bulls’ confidence.
US GDP grows at the rate of 6.6% in Q2, slightly higher than the expected rate of 6.5%. In response, the US markets also continued to rise, reaching a new high for the 52nd time this year.
At this rate, 2021 will be the second most since 1928. We have also seen similar rallies in 2014 and 2017.
Corporate buybacks continue to accelerate in August, with financials overtaking Tech companies in the buyback spree.
The eurozone economy continues on the path to recovery and expansion in August. The Purchasing Managers’ Index (PMI) came in at 59.5.
PMI or Purchasing Managers’ Index (PMI) indicates the level of business activity in the manufacturing and services sectors in a given period. A reading above 50 means expansion in business activity. Anything below 50 denotes contraction.
Shares in Europe continued to rise on a solid economic outlook, rapid vaccination and accommodative monetary policy.
Chinese stocks continued to recover from the steep correction in July. The Shanghai Composite Index rose 2.8%, and the large-cap CSI 300 Index gained 1.2%.
Unlike the US Fed, The South Korean Central bank has taken a firm stance by increasing interest rates by 0.25% to .075%.
India, the 8th largest market in the world, also saw substantial gains during the week. The Sensex and Nifty also reached new highs breaching 56,000 and 16,700, respectively.
Overall global markets witnessed a strong rally last week, highlighting the fact that the investors' confidence is still high and dips are good buying opportunities.
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