S&P Futures Rise Propelled By Stronger Dollar; Europe At 1 Year High As Yen, Bonds Drop

It appears nothing can stop the upward moment of equities heading into the year end, and as has been the case for the past few weeks, US traders walk in with futures higher, propelled by European stocks which climbed to their highest in almost a year, while the dollar rose and bonds and gold fell, failing again to respond to a series of geopolitical shocks following terrorist attacks in Ankara, Berlin and Zurich. The yen tumbled after the Bank of Japan maintained its stimulus plan even as the central bank touted improving economic prospects for the Japanese economy.
“There was no particular surprise from the policy meeting, but investors are happy that the economy’s fundamentals are finally rising after the BOJ expressed an upbeat view,” said Takuya Takahashi, a strategist at Daiwa Securities.
In an amusing interlude during today’s Kuroda press conference, in which the BOJ head said the BOJ is far from its target, Kuroda said that the BOJ continues to target 10 Year yield at “about 0%” and then added that it is meaningless to try to discuss “what about 0%” is, hinting to markets that as long as US yields keep rising, the Yen will keep falling.

This post was published at Zero Hedge on Dec 20, 2016.