Financial markets are celebrating the unexpected joy provided by the Fed’s continuation decision of QE. Stock markets across the world have made big daily gains. The rally of currencies and stocks are visible beginning from Pacific through Japan and India and towards the west as trading progresses on the next day of the QE news. Prominent eastern markets- China, Korea and Taiwan remain were closed because of a public holiday.
In India, the Rupee returned to the pre-crisis level and is trading at 61.75 intraday, gaining nearly 1.5 Rs per dollar. The stock market also recorded big gains. Sensex made nearly 700 points gain mid day.
Among the emerging markets, current account deficit cousins of India- Indonesia and Turkey are witnessing big currency gains. Many emerging markets are on a celebration mood as both equity and foreign exchange markets are jumping. On the other hand, in the advanced countries, the effect is quite muted though European stocks indices are continuing on the post crisis highs, pulled by the news of the QE extension.