Global markets appear to be easing off the accelerator

Global markets appear to be easing off the accelerator as investors take the opportunity to lock in some profits from a third consecutive day of gains. Underlying investor sentiment remains positive but considering sustained rallies have been the exception rather than the norm it’s only logical that traders take what they can get. The Bank of England cut growth forecasts to 2% annually over the next two years when they released their quarterly inflation report earlier today. The BoE stopped short of indicating any further stimulus measures but did reiterate the effect of tight domestic credit markets, the Eurozone debt crisis and an overall stagnant global economy on their outlook…as if that’s any surprise. Spanish benchmark 10-year bond yields have crept back towards the 7% threshold despite recent discussions of bond buying from the ECB in a “whatever it takes” attempt to stave off collapse in the region’s largest economies. However, this doesn’t seem to be worrying investors as it once did following recent  comments from world central banks that emphasized their readiness to step in if things get worse. As for economic reports today, a U.S. report on second-quarter productivity showed an increase of 1.6%. Have a great day!