European markets trade with no major fluctuations, the first hour of trading was influenced by the worrying PMI reading in China and the pressure on the oil in the international markets.
The publication of the final PMI readings relative to the major European economies and the Eurozone as a whole, did not alter the initial market behavior that is taking a small break from the strong rebound.
As mentioned in the previous post, the US markets exchanges at 52 Week Highs and were recently driven by the decision of the Bank of Japan. In addition to this decision, another important measure was the announcement that the State Pension Fund will increase their exposure to equity markets for 50% of its assets. This Pension Fund is the largest in the world and manages approximately 1.15 million M. USD. The Fund will allocate 35% of its assets to Japanese bonds, 15% to bonds of other countries, 25% in Japanese stocks and 25% to international equities. With these two events, investors expect some of the liquidity generated by the Bank of Japan, as a part of the financial availability of the State Pension Fund are channeled into US stocks, thereby offsetting the reduced liquidity that will characterize the near future, as consequence of the reversal of the Fed monetary policy.
