(1888PressRelease)
May 02, 2009 - European shares also rose in early trade, gaining more than a percent. A record drop in U.S. business inventories in the first-quarter and surprisingly robust consumer spending were widely seen by economists as positive pointing to a growth pick-up in the world's largest economy in coming months.
The U.S. Federal Reserve tweaked its policy statement to say that the economic outlook was improving while vowing to keep rates at a historic low for a long stretch.
Safe-haven government bonds slid and higher-yielding currencies tied to risk appetite such as the Australian dollar jumped against the low-yielding yen. Reports that talks between struggling U.S. automaker Chrysler and the government had broken down and a bankruptcy filing was imminent only briefly dented the jump in riskier assets.
"People were so bearish that the burden of proof to surprise people is relatively low. What you're getting is a joyless rally," said Stephen Yang, an analyst with Seedorf Luxman & Partners in Singapore.
"As earnings expectations are revised up with economic activity, the market goes up with that," the Seedorf Luxman & Partners analyst said.
Data in Japan showing industrial production grew twice as much as expected in March thanks to strong Chinese demand for electronics is one of the main factors fuelling the rally in Asian technology shares in the past two months.
Seedorf Luxman & Partners are a specialized advisory and consultancy company that provides investors with the resources necessary to find small stocks with tremendous growth potential, unknown to the general investing public. All of our team with comprehensive fields of expertise are driven by a focus upon helping our clients meet their investment objectives. Whether you are an individual investor or an institutional client we will provide an excellent level of service.
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