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After six years of excessive and misdirected tax cuts, there is virtually no leeway to cut taxes further to stimulate consumption.
Following ECB president Mario Draghi brushing talk of rifts at the central bank and suggesting it would act further to stimulate the flagging eurozone economy, investors have become more optimistic.
The bond-yield outlook could be a further source of strength: While the Fed is already at a zero interest rate policy, other central banks will cut rates further to stimulate growth, putting downward pressure on currencies like the euro.
In fact, Minnesota Fed President Kacherlakota believes interest rates could be dropped further to stimulate more growth in a recent speech.
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The White House meeting today was to discuss further measures to stimulate the economy, stabilise the financial sector and create jobs.
The European Central Bank is expected to take further action to stimulate the eurozone economy at its next meeting in March.
It is very likely that Osborne will use his budget speech to announce further initiatives to stimulate private house-building, such as the new garden city in Ebbsfleet.
However, the data will diminish hopes that the ECB will feel the need to take further action to stimulate growth.
There have also been disappointing figures from China and the US, emphasising the prospect of further measures to stimulate the global economy.
Miners are among the main gainers on hopes that China would make further moves to stimulate its economy following weak monthly trade figures.
Miners have had a rough week but are regaining some ground on hopes of further boosts to stimulate the global economy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com