Generally, a rising trend in rates is bearish for stocks; a falling trend is bullish.

Monetary conditions exert an enormous influence on stock prices. Indeed, the monetary climate - primarily the trend in interest rates and Federal Reserve policy - is the dominant factor in determining the stock market's major direction.

Falling is easier than rising

Life is a beautiful symphony of rises and falls. And by 'falls' I do not mean anything negative. Falling is just rising in the opposite direction.

There is better confidence in Asia. Corporate profitability is improving, unemployment is falling, wages are rising, interest rates are low, and there's a willingness to buy into assets. People are getting their money out of saving and into assets; otherwise they're competing with inflation.

Falling stocks can prompt some buying of bonds.