For long-term investors who have recently complained that stock markets are too expensive, and opening of medium- and long-term positions at such levels is dangerous, last week provided some basis for consideration.
On Monday, global stock markets gained and pulled back from local minimums amid a better general market sentiment and a return to risk appetite.
Asian markets extended gains on Tuesday, as global stock markets began to recover last Friday after experiencing almost a week of losses in the light of a massive sell-off.
Today the most important market event is market stability (at least in European trading) after the volatility, sale-off and risk-off at last week.
On Friday, the decline in European markets continued amid a general decline in risk appetite and the possibility of another government shutdown in the US.
Asian stock markets started broadly higher this week, with commodity prices pushing some key names in the region to the upside as the dollar corrected downwards.
Yesterday, the decline in the US stock market resumed – SP 500 index of the broad market fell by 100 points, and DOW lost 1000 points, which led to a new massive sale-off in Asia on the Friday session.
The Australian dollar is poised to end trading on Friday with broad weekly losses against most of its major peers, even after posting some gains today despite new remarks on economic conditions from the Reserve Bank of Australia.