Sentiment among German companies has recovered somewhat after a “catastrophic few months", the Ifo Institute said yesterday, in what neatly sums up where the global economy stands right now: horrendous, but perhaps not as horrendous as it could have been. Of course, this is not the main reason stocks keep making new highs; this lies in the action of central banks and the vast amount of liquidity being pumped into the system. The European Central Bank’s Villeroy – the governor of the Bank of France – said in all likelihood more stimulus is on the way. Overnight we’ve also heard from the Bank of Japan and PBOC, both of which have stressed they will keep their hands on the pump no matter what.
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