Early on Wednesday, Federal Reserve Chair Janet Yellen released a statement declaring that it would not be changing its benchmark interest rate, news that might not speak well of the American economy, but was greeted with gusto by the European markets.
On Thursday, the European markets had a similar response to the Bank of Japan’s decision not to cut interest rates.
Europe’s enamored by the Bank of Japan’s continued ability to adjust its policies as the inflation outlook shifts. Italy’s FTSE market is up 1.2 percent, the German DAX 1.97 percent, both of which serve to benefit from these moves
Combined, the moves have encouraged risk appetite, and while no individual firm has reaped these benefits yet, semi-conductor Infineon is poised to.