Stocks rocket higher after dovish Fed


All three US equity benchmarks were strongly higher today and they were trading 3% stronger during the US session. EU indices also rose notably. 

Earlier in the day, the Fed chair Jerome Powell said that "there’s a lot more we can do" and just so everyone, including Ben Bernanke understands what the Fed does, he added "We print [money] digitally... we have the ability to create money digitally and we do that by buying Treasury Bills or bonds or other government-guaranteed securities."

Stocks loved this message and indices were catapulted higher, back toward the current cycle highs. 

Oil also soared today as Chinese demand reappeared, rising to pre-crisis levels. The WTI benchmark was up 9%, changing hands at around 32.40 USD and the spread between the June and July contract narrowed to zero, which is another positive sign for the oil market. 

The EURUSD and GBPUSD pair rose after Powell's dovish remarks, but the USDJPY pair remained bid and was trading half a percent higher as US yields rose sharply for some reason.
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