After the oil crisis and series of events that led the stock indices under pressure since July this year, this week showed signs of gains in major markets of the world.
After a week of the announcement of monetary policy by Central bank, US investors seemed skeptical about their interest rate announcement, hence showed interest in the stock market trading. Moreover, the announcement about the rise of interest rate in December has led to speculations across the state which can push the bond and equity market to a decline along with the dollar rate.
The European Market, on the other hand, had mixed approach with a slight dip in the trading but overall a rise in trading volume across the indices. Britain exit from the European Union has still kept the pressure on the European market as the exchange rates of pound and euro falls. This further worries the region of slow growth. Moreover, the debt crisis in Europe, especially in Italy and Spain, has also highlighted its effect in the market.
Since the oil prices have stabilized after the fall, the news that Saudi Arabia has offered a decrease in oil output if Iran agrees to freeze has also gained momentum among the investors interested in oil company stocks. Furthermore, OPEC talks are due in Algeria very soon. This bow down of Saudi Arabia signalizes greater good for the oil market in the next few weeks.
Apart from all other regions, Asian shares are at new high. Japan did face a fall in the bond market with the reaction on the new policy announcement which keeps long-term yield to zero. Other Asian markets such as Indonesia, India, Pakistan, China and rest also sensed an improvement over the week.
Furthermore, Australian market also showed a positive trend. Earlier the global stocks have reported having moved slowly in the previous month.