Charting the Markets: Global Stocks Rise for Third Day
An employee is reflected in a glass panel as he monitors securities on a computer monitor at a brokerage firm in Mumbai, India, on Tuesday, Aug. 25, 2015. Indian stocks advanced in volatile trading a day after the benchmark gauge plunged the most in six years, as banks helped counter declines in software exporters.
Dhiraj Singh/BloombergGlobal stocks are rising for a third day before Federal Reserve Chair Janet Yellen addresses Congress, in her first speech since the U.S. central bank signaled last week interest rates may rise in 2015. Investors are still digesting comments made by European Central Bank President Mario Draghi, who spoke at a cultural event in Frankfurt Tuesday evening. He said policy "will need to be re-examined" in December, leaving the door open for more easing. Only a few days ago, in an Italian newspaper interview, he said it's still an "open question" whether adding further stimulus will be necessary next month. The MSCI All Country World Index has risen to its highest level since Aug. 18, after a 7.8 percent jump in October, the biggest monthly increase in four years.
Appetite for riskier assets is evident in the performance of emerging market equities, which have risen to a three-month high. The MSCI Emerging Markets Index is gaining for a fourth day, its best run in almost a month, based on the assumption China will stabilize its economy. The durability of the rally might depend on the outcome of Friday's U.S. jobs report. A strong number could boost bets for a rate hike this year, acting as a barrier to further emerging market gains. The MSCI Emerging Markets Index has risen 13 percent since setting a six-year low in August.