Bull Run or Bubble? Investors Eye New Highs as EUR/USD Rallies and Fed Prepares Cuts
Global markets were buoyed this week by better-than-feared news on several fronts. After a rough September, U.S. bank earnings beat estimates: Morgan Stanley and Bank of America both delivered upside surprises, which helped calm trade-war jittersreuters.com. European stocks likewise rallied, led by luxury companies: LVMH reported positive third-quarter sales and its shares surged as much as 14%, the biggest one-day rise since 2001reuters.comreuters.com. European indices closed higher by ~0.6%reuters.com. As Stefan Bauknecht of DWS observes, the luxury data “surprised investors positively and are likely to keep the sector’s share price momentum alive”reuters.com.
