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Getting Over September   October 5 - October 9
Fri, 09 Oct 04:09 PM EST/09:09 PM GMT
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Global markets appear to be shaking off memories of August's China meltdown and terrible overall performance in September despite lingering fears about the world economy. US and European stocks saw very solid gains this week: the S&P500 notched its best weekly rise of 2015 with a 3.3% gain and the EuroSTOXX added 5.3%, its best week since before the Eurozone crisis. The action was driven by bargain hunting in beaten down commodity-related names, led by the continued snap back in Glencore and crude futures reaching a two-month high. The increased risk appetite among investors pushed up government bond yields on both sides of the Atlantic. ECB and Fed minutes detailed the central banks' fears about the global slowdown, but also exposed tones of confidence about their respective domestic economies, while the BoJ and BoE both followed the Fed's lead and held policy unchanged. China took most of the week off for its 'Golden Week', but officials in Beijing took time to express optimism that the mainland stock market crisis has subsided. Twelve other Pacific Rim nations reached an agreement on the ambitious TPP trade accord. Corporate earnings season has begun, with fears that US firms will see their third consecutive quarter of declining profits.

The minutes from the September 16-17th FOMC meeting further underlined the extent to which the Fed was unsettled by weak inflation and global growth headwinds. Commodity deflation and the stronger greenback were cited by many members as the main reasons to wait for more improvement before hiking rates. Fed officials did not see the issues as having "materially altered" US economic prospects, and the minutes did not suggest there was intense disagreement with the decision to hold off on tightening policy. The dovish tone of the minutes inspired a risk-on sentiment that rallied the S&P500 above the 2,000 market on Thursday afternoon.

The Bank of England's MPC voted by 8 to 1 to keep rates unchanged. McCafferty was the dissenter for the third meeting in a row, calling for a hike. BoE policymakers appeared fairly relaxed about probl ...
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