European investors smiled with optimism today after a statement from the US FOMC suggested yesterday that stimulus measures would continue until the labour markets shows a significant improvement and also refused to provide a timetable for winding down stimulus measures. Although officials failed to provide any new information, the fact that officials did not indicate their intention to slowdown stimulus measures at present thrilled investors.
However, officials did escape any probing questions due to the absence of a press conference following the statement. Arguably the Fed dodged a bullet with just releasing the statement and not having to deal with attempts to draw some new information from officials.
China is also back in the spot light today, but for positive reasons this time. Data released overnight which showed manufacturing PMI came in better-than-expected excited investors. However, there is still an air of caution over China as every time investors start to believe that China is firmly on the path to economic recovery, they are hit back with some worse-than-expected economic data.