On Wednesday we saw a nice U.S. market rally based on improved fundamentals, i.e. a better-than-expected retail sales report which suggested that the U.S. consumer may not be as dead as previously thought. This was something that Japan could possibly sink its teeth into to justify a rally in the Nikkei. Since the Nikkei was not significantly higher yesterday, it made sense that the Nikkei had significant room to rally today (in response to apparent improved U.S. fundamentals) just to "catch up" with the U.S. market. I decided to stay in the I-Fund for Thursday to play a possible bounce in the Nikkei, and I always try to consider what happened in Japan during the previous session and whether the Nikkei might have a need to "catch up" with the U.S. market. If the odds of a catch up Nikkei bounce are good, then it usually makes sense to stay one more day in the I-Fund since the Nikkei represents about 25% of the I-Fund value. Let's hope that Europe is also higher and that the U.S. markets have another good day on Thursday.
European Factors -- Shares set to open higher; big earnings day
European shares were set to open higher on Thursday, tracking strong gains in Asia and the United States driven by positive economic data, while investors prepared to wade into a big earnings day.
Bookmakers expected Britain's FTSE 100
.FTSE to open up 28 to 34 points, Germany's DAX
.GDAXI up 46 to 56 points and France's CAC
.FCHI up 26 to 34 points, making for gains of 0.6-0.8 percent.
http://www.reuters.com/article/marketsNews/idUKL1436743720080214?rpc=44