US equities surely liked what they heard from the FOMC on Wednesday, but emerging markets cheered the comments even more. Starting with the group as a whole, the Emerging Markets ETF (EEM) rose 0.8% and closed above its 50-DMA for the first time since May 3rd and also looks to have broken above some short term resistance as well.
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Down in Brazil, the benchmark Ibovespa index saw a similar move closing at a record high and above 100,000 for the first time in its history.
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On a dollar-adjusted basis, the Brazilian benchmark still remains well off its recent highs, but it does look to have broken its downtrend from its highs in early February. No one likes easy money more than emerging markets and this week’s moves from global central banks has been music to their ears.
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