Stock markets are pricing in the best of both worlds

Financial markets are pricing in the best of both worlds, a recession that allows rates to be low and inflation down sharply, yet one that does not have a hugely negative effect on corporate earnings, according to a note circulated on Thursday by Barclays analyst Ajay Rajadhyaksha.

The Nasdaq Composite gained 87.24 points or 0.73 percent to 12,013. The Dow Jones industrials rose by 141.43 points or 0.43 percent to 32,859. The Standard and Poor's 500 increased 23.02 points or 0.57 percent to 4,050. The U.S. dollar was almost across the board when it came to foreign exchange markets. The Japanese yen fell 0.25 percent to 132.53, near the U.S. close Thursday.

The euro rose to 1.0906 with a 0.58 percent increase, which is less than its 1.0925 high for the day.

The Canadian dollar increased by 0.25 percent to 1.35244, the recent rally was continued by the Canadian dollar.

The Australian dollar went up 0.40% to 0.6711 among the commodity currencies, while the New Zealand dollar gained 0.66 percent to 0.62647.

The major indices ended up mixed on Thursday on the international equity markets. In Europe, the ESTX 50 PR.EUR gained 1.28 percent, or 54.15 points, to close at 4,285. The Euronext 100 Index was up by 0.97 percent, or 12.96 points, to close at 1,350, while the Euronext 100 Index rose by 0.97 percent, or 12.96 points. In Brussels, the BEL 20 gained 0.87 percent, or 32.63 points, to close at 3,777. The FTSE 100 index rose by 0.74 percent, or 56.16 points, to close at 7,620 in London. The DAX PERFORMANCE-INDEX gained 1.26 percent, or 193.62 points, to finish at 15,522. In Paris, the CAC 40 rose by 1.06 percent, or 76.38 points, to close at 7,263. The MOEX Russia Index fell by 0.19 percent, or 4.14 points, to close at 2,222 in Russia. In Asia, the Nikkei 225 in Tokyo fell by 0.36 percent, or 100.85 points, to close at 27,782. In Hong Kong, the rose by 0.58 percent, or 116.73 points, to close at 20,309. In China, the SSE Composite Index gained 0.65 percent, or 21.19 points, to close at 3,261. The Shenzhen Index rose by 0.62 percent, or 71.92 points, to close at 11,651. The Straits Times Index STI fell by 0.16 percent, or 5.36 points, to close at 3,257 in Singapore. In India, the S rose by 0.60 percent, or 346.37 points, to close at 57,960. The IDX COMPOSITE in Indonesia fell by 0.45 percent, or 30.48 points, to close at 6,808. In Malaysia, the FTSE Bursa Malaysia KLCI gained 0.30 percent or 4.26 points to close at 1,424. In Australia, the S&P ASX 200 gained 1.02 percent, or 72.00 points, to close at 7,122. The ALL ORDINARIES rose by 1.06 percent, or 76.40 points, to close at 7,312. In New Zealand, the S&P NZX 50 INDEX GROSS went up by 1.67 percent, or 196.42 points, to close Thursday at 11,933.