Investors moved back into risk-on territory as strength in US earnings afforded global equities more breathing space. The biggest gains were scored in Japan (+5.5%) and the US (+4.1%). Australian markets climbed 2.6%.
With respect to the reporting catalyst, US corporate fundamentals continued to hold alongside a platform of improving margins and profitability, but sales growth is not there.
The market in effect had a new drug dose of Quantitative Easing when the US Fed, ECB and Bank of Japan.
If history make sense, this drug dose should run out next week, around the US Mid Term Election and have a period weakness/consolidation until mid- late November.
