U.S. indexes gapped up sharply Friday morning and while they gave back some of those gains later in the day finished with a solid move upward. The S&P 500 added 0.52% and the NASDAQ 0.24%. As has been the case for much of the past 7 years today’s move was driven by central bankers – both in Europe and China.
First in Europe, European Central Bank President Mario Draghi said he will do what is necessary to raise inflation in the region as fast as possible. Should the current policy not be effective, the ECB will “broaden even more the channels” through which it intervenes, by adjusting the size, pace and composition of asset purchases. In Asia, China cut its benchmark interest rates for the first time since July 2012. The one-year benchmark lending rate has been trimmed by 40 basis points to 5.6 percent.Continue reading