After the US Federal Reserve announced an extra $600bn in quantitative easing, stock markets around the world saw strong rallies. In Europe the fresh liquidity caused the FTSE 100 to reach a 52 week high.
Mining stocks had a particularly good time of it. As a FinancialSpreads.com report on quantitative easing stated: “However you look at it, and whatever your view of more quantitative easing, it equals a weaker Dollar. The result is that investors are looking elsewhere to put their money. This means putting it into the emerging markets and that in turn means stronger mining stocks. Of course, with this kind of action, the risk of more bubbles increases.”
Where next for the stock markets? Well, the FTSE 100 is taking on resistance levels and the bears are getting squeezed. This could produce a breakout, but it looks like
